Employer HSA Program Transition FAQ

On August 29, 2025, your employee HSA accounts will transition from Allegacy Federal Credit Union (Allegacy) and powered by Bend to HSA Bank, a division of Webster Bank, N.A. (HSA Bank), a leading provider of health savings account management.

We request that your team take several actions to help facilitate a smooth and accurate transition of your program. You will be contacted by the HSA Bank Implementation team by late July, who will provide further information about the new program and will work with you to ensure your program is established correctly in HSA Bank systems. You will be assigned a single point of contact to work with during implementation, including helping you to gain an understanding of HSA Bank processes for enrollments and contributions, as well as learning about reporting and portal usage for your group. This transition impacts companies with active HSA programs as well as individual member accounts at Allegacy.

The current HSA program offered through Allegacy will no longer be available as of the transition date. We hope that you’ll allow HSA Bank to provide the program to your employees, along with many supportive tools and teams to create a great experience. If, however, you choose not to transition to HSA Bank, you can move to a new provider prior to the transition date. All open HSA accounts and active employer programs will be transitioned at that time and will no longer be supported by Allegacy.

To ensure a smooth transition of your program, several steps will be taken as follows:

Timing	Handled by	Action
By 7/07/2025	Employer	Let your HSA participants know that they will receive communications from Allegacy regarding the account movement to HSA Bank. Encourage all participants to update their contact information if needed, including their mailing address, phone number, and email address. They can update this information via Allegacy’s online banking site and should do so by July 30, 2025.
No later than 7/30/2025	Employer	Please ensure that your participant census information is updated in the HSA Employer Portal, including termination dates for anyone no longer participating in the program and updates due to health plan coverage changes (Individual or Family). This information will be shared with HSA Bank to assist in the smooth transition of your program.
By late July	HSA Bank	The HSA Bank Implementation team will reach out to schedule your implementation meeting to establish your HSA Bank program. During implementation, you will be given access to HSA Bank’s employer portal, where you will accept the terms & conditions of the program and will learn how to use its features to support your program needs
7/30/2025	Employer	For any new enrollments needed for August 15, 2025, add participants to the portal no later than July 30, 2025. No new enrollment should be added in the current portal after this date. New participants eligible 9/1/2025 should be entered into the HSA Bank employer portal and can be coordinated with your implementation contact.
8/15/2025	Employer	Final HSA contributions to be processed through the current Employer portal must be completed by August 15, 2025. If you currently load contribution files to the portal, this is the last day on which files can be loaded. This allows for normal processing and corrections if needed prior to the program transition.
By 8/28/2025	Employer	For employers who process contributions through the HSA portal, we recommend pulling a copy of the YTD Contribution Report for your records to capture funds deposited to employee accounts prior to your transition date.
8/29/2025	HSA Bank and Allegacy	On your program transition date of August 29, 2025, all funds transferred from Allegacy will be deposited into the new HSA Bank accounts for your employees. At that time, the current Employer portal will no longer be available for your team’s use.
After HSA Bank implementation	Employer	Contribution deposits begin to process into new HSA Bank accounts for your employees, utilizing the funding method established during your program implementation with the HSA Bank team. Your implementation contact will work with you to ensure that this first contribution deposit processes successfully.

Allegacy and HSA Bank will communicate directly to your employees with all the information they need to understand about the changes being made for your program. In addition to the mailings they will receive, your employees will have the opportunity to access details about the transition to HSA Bank on a special site for Allegacy members. This site URL will be provided on the member mailing from HSA Bank.

Timing	Handled by	Action
7/15/2025	Allegacy	A letter will be sent by USPS mail to inform your participants about the assignment of the accounts to HSA Bank.
7/30/2025	Employee	Your employees should ensure that their contact information is updated for their HSA account, including mailing address, phone number and email address. This will help ensure that debit cards and other communications regarding their new HSA Bank account are received. Contact information can be updated in Allegacy’s online banking site.
8/8/2025	HSA Bank	An additional mailing with more details regarding the account transition, including details regarding existing HSA investment account actions required will be sent after the initial notification.
8/13/2025	HSA Bank	HSA Bank Debit cards and welcome kits will be mailed to your employees on or about August 13, 2025. Employees should watch their mail
8/15/2025	Employee	Contributions into the account through your company and also through personal contribution deposits will need to be completed by August 15, 2025 in order to completely process before the transition takes place. Contributions after this date may be processed into their new HSA Bank accounts as will be discussed during your program implementation.
8/15/2025	Employee	The last day to request a reimbursement for out-of-pocket expenses either in the portal or via form request will be August 15, 2025. This will ensure that everything can process prior to the account transition. Once the new HSA Bank account is established and has been funded, employees can request reimbursements as needed from their new HSA Bank account.
8/15/2025	Employee	Any employee accounts that have a $0 balance as of August 15, 2025, will be closed and will not be transferred to HSA Bank.
8/25/2025	Employee	Current Allegacy HSA Debit Cards will no longer be available for use as of August 25, 2025, to prepare for the transition of the account. No account activity is permitted after this date. Once the transition is complete, the employee can use funds in the HSA Bank account, either by using their new debit card or by submitting a reimbursement request for out-of-pocket expenses.
Multiple dates	Employee	Effective July 30, 2025, no new enrollments will be permitted into the HSA Investment option. As of August 15, 2025, employees who use the Investment options in the HSA portal will no longer be able to buy into these investments. Action will be needed by those with investments to liquidate all of their invested funds by August 15, 2025. Any funds not liquidated will then be forced liquidated on August 19, 2025, in order for the funds to be included in the transfer of the account to HSA Bank. Employees will be able to enroll in HSA Bank’s available investment programs once their new account has been established, and will receive details about this program.
8/29/2025	Employee	On the transition date, funds will be deposited into the employee’s new HSA Bank account and will be available for use via the new debit card or through reimbursement requests. Employees will have access to their HSA account online and via the HSA Bank mobile app.
5/31/2026	HSA Bank	After the account transition to HSA Bank, employees will continue to have access to their current Allegacy account online in a read-only instance through May 2026. Employees will receive instructions regarding how to access their prior account as the transition process moves forward.

This will be discussed in detail during your program implementation. You can also learn more from our Employer Resource Center here: https://hsabank.com/HSABank/Employers/Open-Enrollment.

File feed options should be discussed with your HSA Bank Implementation point of contact, who can share details on file feed options available for your program.

HSA Bank does work with Employee Navigator, and this option should be discussed with your HSA Bank Implementation point of contact, who can explain how to get the connection set up for your program.

Any contributions that need to be processed after the cutoff date in the current portal can be processed into the HSA Bank accounts once your program setup is complete. You can discuss this with the implementation team to ensure contributions are completed after employee accounts are established.

Once funds are transitioned to HSA Bank, any corrections needed will have to process through the HSA Bank standard correction process. This will be discussed during your implementation, and the Business Relations team will be able to assist you when you need to make such requests later in the year.

We are pleased to inform you that when your program transitions from Allegacy to HSA Bank, we will continue the no-fee structure for your HSA program. Please note that this is subject to change in the future if your group decides to take advantage of HSA Bank’s other available products

For any questions regarding your HSA program, please continue to reach out to the Allegacy team you contact today.

We appreciate your patience.