Health Savings Account (HSA) HSA FAQs Fidelity Investments

Please enter a valid email address Please enter a valid email address Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: " Your email has been sent.

Mutual Funds and Mutual Fund Investing - Fidelity Investments

Clicking a link will open a new window.

h1 Health savings account HSA FAQs

Our HSA FAQs provide a useful guide to help get you started.
Go

HSA basics for both Fidelity HSA and Fidelity Go HSA

It's an individual account designed to work together with an HSA-eligible high-deductible health plan (HDHP). Eligible contributions are tax-deductible, and you can use your HSA money tax-free to pay for qualified medical expenses for you, your spouse, and your qualified dependents. You can choose to invest some or all of your HSA money for potential growth to help pay for qualified medical expenses in retirement. If it grows, that growth is also tax-free. Plus, your HSA is not "use-it-or-lose-it"—the account belongs to you, and your contributions can accumulate year after year. At Fidelity, you can choose the Fidelity HSA, a brokerage account that you manage yourself (self-directed) or the Fidelity Go HSA, which lets us choose and manage the investments for you. HSAs are tax-advantaged in three ways. First, personal HSA contributions using after-tax money may be federal income tax-deductible. If you have an HSA through your employer, you can make pre-tax payroll contributions—this type of contribution saves more on taxes than tax-deductible after-tax contributions.1 Second, spending your HSA money on qualified medical expenses is free of federal income taxes. Third, if you invest some or all of your HSA money, any growth is also tax-free. Yes. You, your spouse, and your eligible dependents can all use your HSA money to pay for qualified medical expenses as long as everyone meets eligibility requirements and you, the account owner, have authorized each of them by requesting an additional HSA debit card in their name. Debit cards are only available for the Fidelity HSA. If you're covered by an HSA-eligible health plan, an HSA can offer a variety of benefits. It's tax-advantaged in 3 ways—contributing, spending for qualified medical expenses, and investment growth are all federal income tax-free. You can also invest your HSA money for potential long-term growth, so HSAs are a great way to save for health care costs through retirement. Yes. You may open and contribute to as many HSAs as you like. Please note that the annual IRS contribution limit will still apply to the total amount you contribute to all your HSAs, and opening more HSAs will not increase your limit. Also, if you have an HSA through your employer, any contributions your employer makes will count toward the limit. See for more on annual HSA contribution limits. Yes. HSA money is not "use-it-or-lose-it," unlike flexible spending accounts (FSAs), and your entire HSA balance carries over from year to year, forever. In general, HSAs cover a broader variety of qualified medical expenses than FSAs.2 Also, FSAs are generally sponsored by your employer, while your Fidelity HSA is owned by you. That means your HSA is always yours, even if you change employers or move to a different state. An may cost less. Premiums are generally lower in exchange for higher deductibles, and HSA contributions, earnings, and distributions are all federal tax-free when used to pay for qualified medical expenses. HSA-eligible health plans have an annual out-of-pocket maximum expense amount, which limits your total yearly health care spending with additional costs, such as co-pays and co-insurance. Consider your own personal situation carefully before making a decision about enrolling in an HSA-eligible plan and opening an HSA.3 Your HSA and your balance are always yours, even if you change employers or move to another state. You can contribute to your HSA—even an HSA offered by your previous employer—as long as you continue to meet eligibility requirements. Even if you become ineligible to contribute to your HSA, you can spend your HSA money tax-free for qualified medical expenses any time, including through retirement. Your HSA is always yours, even if you change health insurance plans. However, if you switch to a health plan that is not HSA-eligible, you will no longer be eligible to make future contributions to your HSA.

HSA eligibility for both Fidelity HSA and Fidelity Go HSA

You're eligible to open and contribute to an HSA if: You're covered by an HSA-eligible health plan on the first of the month You're not covered by an ineligible health plan You're not enrolled in Medicare You cannot be claimed as a dependent on someone else's tax return There are no taxes or penalties for opening an HSA while you’re ineligible, as long as you don’t make contributions to it. If you opened an HSA by mistake while ineligible, call Fidelity to close your HSA. You will not have to pay federal income taxes and/or penalties until you make contributions to your HSA while you’re ineligible. Any contributions you do make while ineligible will be subject to federal income taxes and/or penalties. However, you can consolidate any old HSAs into one HSA while ineligible, using a direct custodian-to-custodian transfer—this will not count toward your annual contribution limit. If you make HSA contributions while you’re ineligible to do so, your contributions may be taxable and you may have to pay penalties. For 2022, the IRS defines HSA-eligible plans as high-deductible health plans (HDHPs) with a deductible of at least $1,400 for an individual and $2,800 for families. These health plans must also have an annual out-of-pocket maximum spending amount of no more than $7,050 for an individual and $14,100 for families. See for more about HSA-eligible health plans. For 2023, the IRS defines HSA-eligible plans as high-deductible health plans (HDHPs) with a deductible of at least $1,500 for an individual and $3,000 for families. These health plans must also have an annual out-of-pocket maximum spending amount of no more than $7,500 for an individual and $15,000 for families. See for more about HSA-eligible health plans. Generally, you are not eligible to open or contribute to an HSA if you are covered under a health plan that is not a high-deductible health plan (non-HDHP), with certain exceptions for plans with preventative care benefits and some types of permitted insurance and permitted coverage. HSA-ineligible health plans include: A spouse's non-HDHP coverage that covers you. However, you still may be eligible to open and contribute to an HSA if your spouse has a non-HDHP that does not cover you Medicare or Tricare Veterans Affairs (VA) medical benefits received during the previous three (3) months A general-purpose health flexible spending account (FSA) or health reimbursement arrangement (HRA), including coverage through your spouse, that pays or reimburses medical expenses before you meet your HSA-eligible health plan's deductible Have questions? See or consult with your tax advisor.

Fidelity HSA information

There are no fees for opening a Fidelity HSA. If you choose to invest in mutual funds, expenses will still apply for those funds. See the funds' prospectus for more information. There may also be commissions, interest charges, and other expenses related to transactions or holding specific investments, such as mutual funds. See for more information. If you have a Fidelity HSA through your employer, your account may be charged an administrative fee of up to $12 per quarter ($48 annually), unless it’s paid by your employer. That administrative fee may be waived for households established before a certain date and meeting certain asset minimums at Fidelity. There is no minimum balance to open a Fidelity HSA.

Fidelity Go HSA information

Fidelity Go HSA is a type of managed account designed for clients who seek a digital, discretionary investment management experience. Most of your experience with Fidelity Go takes place online—including providing information about yourself, opening your account, and tracking your investments. When you enroll in Fidelity Go, you turn the day-to-day investment decisions for your money over to a team of experienced professionals, who provide this service for a fee. Based on information you provide, these professionals invest your money to help you meet your investment goals. With Fidelity Go, you start by telling us a few things about yourself: the year you were born, your household income, the reason you're investing, the amount you hope to invest, when you'll need the money you're investing, and your risk tolerance. Then we'll suggest an investment strategy consisting of Fidelity funds that hold stocks, bonds, and short-term investments. You can also give us more information about yourself, which allows us to know you better and helps us suggest an investment strategy that may be even more closely aligned to your financial situation. When you don’t provide us with the additional information, we propose an investment strategy using the information you provided us along with assumed responses about you based on information we derive about similarly aged investors or investors with a similar time horizon from other Fidelity programs and services. You can select the proposed investment strategy or another strategy that you believe is appropriate for you (subject to certain constraints). After that, you open your account online. Once your account is open, you can add money to it. We'll start by offering you the chance to make an initial deposit, in the same amount you told us you were going to start with when you created your profile. If you told us you were going to make recurring monthly deposits, we'll prompt you to add those next. But don't worry if you want to put those off until later—you can set those up at any time. A Fidelity Go HSA offers tiered pricing based on your account balance. You'll pay no advisory fee for a balance under $25,000 and 0.35% per year for a balance of $25,000 and above. There are no trading fees, transaction fees, or rebalancing fees. Fidelity Go HSA invests in zero expense ratio Fidelity Flex mutual funds that do not charge management fees or, with limited exceptions, fund expenses. There is no minimum initial investment to open a Fidelity Go HSA. However, for us to invest your money according to the investment strategy you've chosen, your account balance must be at least $10. Your account will hold a combination of Fidelity Flex mutual funds. These funds generally hold domestic stocks, foreign stocks, bonds or short-term investments. The day-to-day investment and trading decisions in your Fidelity Go HSA will be handled by Strategic Advisers LLC, a registered investment adviser and a Fidelity Investments company. The IRS defines HSA contributions each year. For 2022, HSA contribution limits are S3,650 for individual health plans and S7,300 for family health plans. For 2023, HSA contribution limits are S3,850 for individual health plans and S7,750 for family health plans. If you're age 55 or older during the tax-year, you may also be eligible to make an additional $1,000 catch-up contribution annually. Your spouse can also make a catch-up contribution if they're 55 or older, but they'll need to open their own HSA. Even though Fidelity Go HSAs are intended for investing goals of three years or longer, you can still reimburse yourself for qualified medical expenses you pay out-of-pocket by submitting a withdrawal request. When you do, we'll sell securities in your account for you. After the money has settled, which can take up to ten business days, we'll send it to you by check, electronic funds transfer (EFT), or transfer of funds to another account. If you also have a self-directed Fidelity HSA, you can use a debit card to pay for qualified medical expenses by transferring money over from your Fidelity Go HSA. You can use money in the core position in a self-directed Fidelity HSA for short-term qualified medical expenses. This way you have quick access, through Fidelity BillPay and your debit card, to the money needed to reimburse yourself for out-of-pocket expenses. Fidelity Go HSA is a managed account designed for use towards investment goals with a long-term horizon of three years or more.

h3 Already have a Fidelity HSA

Opened by me Sign in to Fidelity.com to access your HSA account details.
Opened through my employer Sign in to NetBenefits to access/activate your employer-offered HSA.
Questions?
866-402-7610 Fidelity Go provides discretionary investment management, and in certain circumstances, non-discretionary financial planning, for a fee. Advisory services offered by Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. Discretionary portfolio management services provided by Strategic Advisers LLC (Strategic Advisers), a registered investment adviser. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, Strategic Advisers, FBS and NFS are Fidelity Investments companies. 1. If your employer allows you to make pre-tax payroll contributions to an HSA, those are both FICA tax-free and federal income tax-free. Please check with your employer to see if this is possible with an HSA outside of one they provide. Although post-tax contributions are federal income tax-deductible, you will be required to pay FICA taxes on those contributions. This means post-tax HSA contributions may not be as tax-advantaged as pre-tax HSA contributions. 2. Examples of qualified medical expenses covered by HSAs but not FSAs could include COBRA continuation coverage, the cost of health coverage while receiving unemployment benefits, Medicare premiums other than a Medicare supplemental policy, and qualified long-term care insurance contracts. 3. The cost of HSA-eligible health plan coverage or premiums is generally lower than a non-HSA-eligible health plan, which could be used to increase your take-home pay or to help contribute to an HSA, for example, to help contribute enough to your HSA to meet the annual deductible or other savings goals. Any contributions you or your employer may make to your HSA are federal tax-free and could help you pay for the HSA-eligible health plan’s deductible or other qualified medical expenses on a tax-free basis in the current year or be saved for future qualified expenses. The cost-sharing provisions of the HSA-eligible health plan that apply after you meet the HSA-eligible health plan’s deductible, such as co-pays or co-insurance, are subject to a maximum out-of-pocket expense limitation, which can help you assess your potential cost of the HSA-eligible health plan should you need access to care. 4. The securities in your account are protected in accordance with the Securities Investor Protection Corporation (SIPC) for up to $500,000, including up to $250,000 for uninvested cash. We also provide additional coverage above these limits. Neither coverage protects against a decline in the value of your securities, nor does either coverage extend to certain securities that are considered ineligible for coverage. For more details on the SIPC, or to request a SIPC brochure, visit www.sipc.org or call 202-371-8300. Please note that if you utilize the Fidelity HSA bank sweep program in connection with your core account, any balance you maintain in your account is swept to an FDIC-insured position at a bank with which Fidelity has established a relationship, called a "Program Bank." Until funds are swept to the Program Bank, they are covered by SIPC. Once funds are swept to a Program Bank, they are no longer covered by SIPC, but they are eligible for FDIC insurance subject to FDIC insurance coverage limits. For more information about the sweep, please refer to the FDIC-Insured Deposit Sweep Program Disclosures document, which is attached to the HSA Customer Account Agreement. 5. You could lose money by investing in a money market fund. Although the fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Fidelity Investments and its affiliates, the fund’s sponsor, have no legal obligation to provide financial support to money market funds and you should not expect that the sponsor will provide financial support to the fund at any time.

Fidelity’s government and U.S. Treasury money market funds will not impose a fee upon the sale of your shares, nor temporarily suspend your ability to sell shares if the fund's weekly liquid assets fall below 30% of its total assets because of market conditions or other factors. 6. Under the Fidelity FDIC Deposit Sweep Program, uninvested cash balance is swept to one or more Program Banks where it earns a variable rate of interest and is eligible for FDIC insurance. At a minimum, there are five banks available to accept these deposits, making customers eligible for nearly $1,250,000 of FDIC insurance. If the number of available banks changes, or you elect not to use, and/or have existing assets at, one or more of the available banks, the actual amount could be higher or lower. Customers are responsible for monitoring their total assets at each of the Program Banks to determine the extent of available FDIC insurance coverage in accordance with FDIC rules. The deposits at Program Banks are not covered by SIPC. Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation. Tax-free contributions, investment earnings, and distributions is with respect to federal taxation only. Contributions, investment earnings, and distributions may or may not be subject to state taxation. Please consult with your tax advisor regarding your specific situation. * Fidelity's Virtual Assistant uses advanced technology and artificial intelligence to help with frequently asked questions and to enhance your digital experience. It is designed to be both anticipatory and responsive based on your search terms, information you enter in reply to the Virtual Assistant's questions, and your account and other information on file with Fidelity. Fidelity does not guarantee accuracy of the Virtual Assistant's responses or alignment of its suggestions with your intended purpose. The Virtual Assistant does not recommend the purchase or sale of specific securities or digital assets. While it may offer educational information, it does not have the capability to discern what investment choices would be suitable for your personal situation. Do not attempt to place trade orders through the Virtual Assistant; it can provide you with guidance as to how to place a trade at Fidelity, but the Virtual Assistant cannot execute trades on your behalf. Any personal, account or other information you provide to the Virtual Assistant, as well as all search information entered, may be retained, accessible to Fidelity personnel, and used and shared consistent with Fidelity's Privacy Policy. Notwithstanding, you should not provide the Virtual Assistant with credit or debit card information or protected health information. Investing involves risk, including risk of loss. 953181.11.0

Footer

Stay Connected

I will choose and manage my own investments.
I'd like Fidelity to choose and manage my investments.
Important Information Virtual Assistant is Fidelity’s automated natural language search engine to help you find information on the Fidelity.com site. As with any search engine, we ask that you not input personal or account information. Information that you input is not stored or reviewed for any purpose other than to provide search results. Responses provided by the virtual assistant are to help you navigate Fidelity.com and, as with any Internet search engine, you should review the results carefully. Fidelity does not guarantee accuracy of results or suitability of information provided. Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917
796549.1.0