Fidelity Reports its Largest One-Year Increase in Health Savings Accounts in 2011

Sixty-one percent jump as employees rapidly establish HSAs and employers increasingly migrate to high-deductible health plans

BOSTON – Fidelity Investments^® today announced its largest annual increase in Health Savings Accounts (HSA) as more employees seek the long-term savings advantages of the tax-free vehicle to pay for current and future health expenses. In 2011, Fidelity’s HSA customer base jumped 61 percent to 119,000 from 74,000 at the end of 2010. In addition, the company signed 16 new employers offering HSAs to their employees, ending the year with 57, up from 41 at year end 2010. As of February 29, 2012, Fidelity administered HSA assets of $327 million, up 43 percent from $229 million one year prior.

“We’re seeing significant growth in our HSA business as employers turn to high deductible health plans to control escalating costs, and employees turn to the accounts for their long-term savings potential for future health care expenses,” said William Applegate, vice president, Fidelity Investments.

Fidelity administers HSAs for various types of employers, from corporations to universities to health care institutions. In 2011, the company implemented the savings option for CITGO Petroleum Corporation, Boston University, and Catholic Health Partners located throughout Ohio and Kentucky.
More Employers Offered HSA Contribution in 2011
The average annual participant contribution to a Fidelity HSA, which includes money from both employer and employee, rose to $2,677, up from $2,620 in 2010. Most employers offering Fidelity HSAs (86 percent) offered some level of employer contribution in 2011, up from 83 percent in 2010.
 
The annual contribution limit to an HSA set by the IRS rose slightly this year to $3,100 for individuals, up from $3,050 in 2011, and $6,250 for families, up from $6,150. HSAs offer participants three key tax advantages:

• Money contributed to an HSA is tax deductible
• Investment gains are generally federally tax free
• Withdrawals are federally tax free for qualified medical expenses

Most HSA users carry over a balance from year to year. Unlike traditional Flexible Spending Accounts (FSAs), annual HSA contributions do not need to be used in full each year. These balances may be invested for long-term growth helping to pay for health care in retirement.

About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.6 trillion, including managed assets of $1.6 trillion, as of February 29, 2012. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.

Investing involves risk, including the risk of loss. 
 
Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI 02917

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