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With Some Small Credit Unions Jan is Like Y2K All Over Again.

racecar
  |     |   628 posts since 2014

For your entertainment. Remember Y2K 25 years ago? Well instead of a "1999" problem, some small CUs seem to have a "last year" problem in Jan.

Today I tried to make my yearly HSA contribution at a (small) credit union I've been with for years. Their self-service form-generating software worked properly and the contribution form got submitted, but later today I received a phone call: the CSR couldn't process it. When the CSR tried to actually input the contribution, their system kept rejecting it, saying "amount too high." They apparently haven't updated their main system with 2025's higher contribution amounts yet.. And the same thing happened last year when I tried to make a January contribution.

I know it's a small credit union and oversights happen, but doesn't anyone think about this? Their form-generating software had been updated to show 2025 and the new max amounts while filling it out online, but not the main system where the transaction actually gets processed by the CSR, and this is the second year it happened. Since "Y2K" didn't bother me (at the FIs I had back then) it's like this particular little CU has decided to relive the idea, 25 years later!

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racecar
  |     |   628 posts since 2014
Well, it took having to follow up a few times proactively, but they finally managed to update their main system for the correct 2025 amounts, and were able to process my contribution.

I don't mean to sound too harsh on them, they're a small CU (and as I wrote at the top, "for your entertainment") but the same thing happened 2 years in a row, and no one seems to actually think about it until someone calls and the computer can't process it. I likely won't contribute next year, so if the allowed max increases again, then whoever else first asks to contribute the new limit will likely face the same thing.
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w00d00w
  |     |   360 posts since 2012
what are the compelling reasons for holding a HSA at a Bank/CU vs a large brokerage?
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racecar
  |     |   628 posts since 2014
For those who want to invest their HSA money outside of CDs, or keep it liquid in high yield savings accounts, putting their HSA money at a brokerage is the way to go. But for those who want some of their HSA $ to be in CDs, I've always preferred CU/Bank CDs over brokered CDs, because if you ever need the funds early, it's much less hassle (and usually much less penalty) if it's a normal Bank/CU CD (plus the CD rates have almost always been better than brokered CDs). Most Banks/CUs don't do HSA CDs but there actually are a handful that do. But for everything else other than a CD, including keeping the funds liquid, a brokerage house like Fidelity is probably the way to go.
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