Wells Fargo does not offer Health Savings Accounts directly

Wells Fargo is a bank, not a health insurance provider. Health Savings Accounts (HSAs) are tied to specific high-deductible health insurance plans, and only the insurance company or a third-party HSA custodian can set one up. Wells Fargo does not sell health insurance, so it cannot create or sponsor HSAs.

What Wells Fargo does offer is a Health Savings Account custodial service. If you already have an HSA through your employer's health plan or through an insurance company, you can move that account to Wells Fargo and use their bank to hold and invest the money. This is different from Wells Fargo creating the account in the first place.

If you have a high-deductible health plan through your employer, your employer's benefits administrator or your insurance company will tell you which HSA providers are available. You choose from that list. If you buy your own high-deductible plan on the individual market, the insurance company will direct you to HSA options at the time of enrollment.

Key Takeaways

  • Wells Fargo cannot create an HSA because it does not sell health insurance; only insurance companies and employers can sponsor HSAs.
  • Wells Fargo can hold and manage an HSA you already have through another provider, acting as the custodian bank.
  • To open an HSA, you must first enroll in a high-deductible health plan through your employer, the individual market, or Medicare.
  • Your insurance company or employer benefits team will show you which HSA custodians are available to you at the time you sign up for the plan.

How HSAs are created and who can offer them

An HSA is created when you enroll in a high-deductible health plan (HDHP). The insurance company or your employer's benefits administrator then gives you a list of HSA custodians — the banks or financial companies that will hold the account and the money inside it. You pick one from that list.

The custodian is not the same as the insurance company. The insurance company decides you are may be able to access for an HSA. The custodian holds the account, processes deposits and withdrawals, and may offer investment options. Wells Fargo can be the custodian, but it cannot be the insurance company that makes you may be able to access in the first place.

If you get health insurance through your employer, your HR or benefits department will send you enrollment materials that list which HSA custodians you can choose. If you buy insurance on the individual market (through Healthcare.gov or a state exchange), the insurance company will direct you to HSA options during checkout. If you are on Medicare, you cannot open an HSA because Medicare is not a high-deductible plan.

Moving an existing HSA to Wells Fargo

If you already have an HSA at another bank or financial company, you can transfer it to Wells Fargo. This is called a custodial transfer or rollover. The money moves from your old custodian to Wells Fargo, and you keep the same HSA — it just has a new bank holding it.

To start a transfer, contact Wells Fargo's HSA department and ask for a transfer form. You will need to provide the name and account number of your current HSA custodian. Wells Fargo will then contact your old custodian directly and request the funds. The transfer usually takes one to two weeks. During that time, your money is in transit and you cannot withdraw it.

You do not lose any money in a transfer, and you do not owe taxes on the amount moved. The HSA itself stays the same — only the bank holding it changes. If your old custodian charged a fee to close the account, you may owe that fee, so ask before you start the transfer.

What Wells Fargo charges for HSA custodial services

Wells Fargo charges a monthly maintenance fee for holding an HSA. The exact amount varies depending on the type of HSA account you choose and whether you meet certain balance or activity requirements. Some accounts waive the fee if you maintain a minimum balance or set up direct deposit.

In addition to the monthly fee, Wells Fargo may charge for specific services: wire transfers, expedited transfers, or paper statements. If you invest your HSA balance in mutual funds or other securities through Wells Fargo, you may also pay investment fees or transaction costs. Ask Wells Fargo for a full fee schedule before you transfer your account.

Compare Wells Fargo's fees to other HSA custodians before you move your account. Some custodians charge lower monthly fees, and some waive fees entirely if your balance stays above a certain amount. The difference in fees can add up over years, especially if your HSA balance is small.

Investment options within a Wells Fargo HSA

Once your HSA is at Wells Fargo, you can choose how to invest the money. You can keep it in a savings account that earns interest, or you can invest it in mutual funds, stocks, or other securities through Wells Fargo's investment platform.

Many people keep their HSA in a savings account for the first few years to cover near-term medical expenses. Once the balance grows large enough, they move some of the money into investments to grow it for retirement. Wells Fargo allows you to split your balance — some in savings, some in investments — and move money between them as needed.

Investment options vary by account type, so ask Wells Fargo what funds and securities are available to you. Some HSA accounts offer a limited menu of low-cost index funds, while others offer a wider range of choices. If Wells Fargo's investment options do not meet your needs, that is one reason to consider a different custodian.

Using your Wells Fargo HSA to pay for medical expenses

Once your HSA is open at Wells Fargo, you can use the money to pay for may have access to medical expenses. These include doctor visits, prescriptions, dental work, vision care, and many other health costs. You cannot use HSA money to pay for health insurance premiums (with a few exceptions for COBRA, Medicare, or long-term care insurance).

Wells Fargo will issue you a debit card linked to your HSA, or you can request a check or electronic transfer to pay a provider. Keep receipts for all medical expenses you pay with HSA money. The IRS can ask you to prove that expenses were may have access to, and if you cannot show proof, you may owe taxes and penalties on the withdrawal.

You can withdraw money from your HSA at any time without penalty, as long as you use it for may have access to medical expenses. If you withdraw money for non-medical reasons before age 65, you owe income tax on the amount plus a 20 percent penalty. After age 65, you can withdraw money for any reason, but non-medical withdrawals are taxed as income.

Frequently Asked Questions

Can I open an HSA with Wells Fargo if I do not have a high-deductible health plan?

No. An HSA requires enrollment in a high-deductible health plan first. Wells Fargo cannot create an HSA for you without that plan. You must get the plan through your employer, the individual market, or another source before any custodian can open an account.

What if my employer does not list Wells Fargo as an HSA option?

You can only choose from the custodians your employer or insurance company offers. If Wells Fargo is not on the list, you cannot use Wells Fargo for that HSA. You can ask your benefits department to add Wells Fargo as an option, but they may not be able to. Once you leave that employer, you can transfer the HSA to Wells Fargo if you want.

Do I pay taxes on money I put into a Wells Fargo HSA?

No. HSA contributions are tax-deductible, meaning you do not pay federal income tax on the money you put in. If your employer contributes to your HSA, that money is also tax-free. You do pay Social Security and Medicare taxes on HSA contributions, but not income tax.

Can I use my Wells Fargo HSA to pay for my spouse's medical expenses?

Yes, as long as your spouse is on your health insurance plan or you are both covered by the same high-deductible plan. You can also use HSA money to pay for medical expenses of your dependents, even if they are not on your insurance. Keep receipts to prove the expenses were may have access to.

What happens to my Wells Fargo HSA if I change jobs?

Your HSA stays yours. It does not belong to your employer, so you keep it even after you leave. You can leave it at Wells Fargo, transfer it to another custodian, or move it to your new employer's HSA plan if they offer one. There is no time limit — you can keep the account open for as long as you want.