Health Savings Account (HSA) FAQs

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


HSA basics

  • What is an 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.

  • Is an HSA different from an FSA?

    Yes. HSA money is not "use-it-or-lose-it," unlike 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.1 Also, FSAs are generally sponsored by your employer, while your Fidelity personal HSA is a brokerage account owned by you. That means your HSA is always yours, even if you change employers or move to a different state.

  • Is an HSA right for me?

    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.

  • What are the tax benefits for HSAs?

    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.2 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.

  • Can I have more than one HSA?

    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 IRS Publication 969 for more on annual HSA contribution limits.

  • Can my spouse and my dependents use my HSA?

    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.

  • Is an HSA-eligible health plan with an HSA always more expensive than traditional plans?

    An HSA-eligible health plan 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

HSA eligibility

  • How do I know if I'm eligible for an 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
  • What happens if I open an HSA while I’m ineligible for one?

    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.

  • What happens if I contribute to an HSA while I’m ineligible for one?

    If you make HSA contributions while you’re ineligible to do so, your contributions may be taxable and you may have to pay penalties.

  • What is an HSA-eligible health plan?

    For 2019, the IRS defines HSA-eligible plans as high-deductible health plans (HDHPs) with a deductible of at least $1,350 for an individual and $2,700 for families. These health plans must also have an annual out-of-pocket maximum spending amount of no more than $6,750 for an individual and $13,500 for families. See IRS Publication 969 for more about HSA-eligible health plans.

  • What is an HSA-ineligible health plan?

    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 IRS Publication 969 or consult with your tax advisor.

Fidelity HSA information

  • What fees are associated with Fidelity HSAs?

    There are no fees for opening a Fidelity personal HSA or for money movement.

    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 www.fidelity.com/commissions 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.

  • What is the minimum balance to open a Fidelity HSA?

    There is no minimum balance to open a Fidelity HSA.

Life events

  • What happens to my HSA if I change jobs or leave my company?

    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.

  • What if I don't keep the same health insurance plan?

    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.

  • What if I retire and haven't used all my HSA money?

    Your HSA is always yours, so you can still spend your HSA money on qualified medical expenses with no federal income taxes or penalties in retirement.

    Retirement-related qualified medical expenses, covered by your HSA, could include:

    • COBRA coverage costs
    • Health care coverage while you’re receiving unemployment benefits
    • Medicare premiums other than Medicare Supplemental coverage
    • Qualified long-term care coverage

    If you choose to use your HSA money for something other than qualified medical expenses, you will be responsible for paying federal income taxes on it and may be penalized if you’re under age 65. You’ll also still be eligible to contribute to your HSA in retirement as long as you aren’t enrolled in Medicare4 or covered by an ineligible health plan.

HSA contributions

  • How do I move my outside HSAs to my Fidelity HSA?

    To move your outside HSA or HSAs to your Fidelity HSA, please follow our transfer of assets process.

    Please note: It may take a few weeks for your assets to arrive and be available in your Fidelity HSA.

  • How can I contribute to my HSA?

    There are three ways you can contribute to your Fidelity HSA. First, you can link a bank account for fast direct deposits, and you can set up automatic recurring deposits. Second, you can transfer some or all of your balance from another HSA or HSAs, as often as you like, to consolidate your accounts. Third, you can move money from an IRA to your HSA once in your lifetime for a federal income tax deduction. Please see our guide to moving money at Fidelity for more information.

  • Is there a minimum I must contribute to my HSA each year?

    There is no minimum for annual contributions to your Fidelity HSA.

  • What are the annual HSA contribution limits?

    The IRS defines HSA contributions each year. For 2019, HSA contribution limits are $3,500 for individual health plans and $7,000 for family health plans. For 2020, HSA contribution limits are $3,550 for individual health plans and $7,100 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. Please note that if you have an employer-sponsored HSA, any contributions made by your employer will count toward these limits. If you're married and covered by a family health plan, you and your spouse can both contribute to your HSA. If you do, all of your contributions will count toward the yearly contribution limit for family health plans. See IRS Publication 969 for more on annual HSA contribution limits.

  • Who can contribute to my HSA?

    Anyone can make an after-tax contribution to your Fidelity HSA. Generally, contributions another person makes to your HSA will not be tax-deductible for the contributor, and the IRS's annual contribution limits will still apply. See IRS Publication 969 for more on annual HSA contribution limits.

  • Can my employer contribute to my HSA that is not offered through them?

    Check with your employer about their HSA contribution policies and capabilities. You can also make after-tax contributions from your paycheck—those contributions are federal income tax-deductible.

  • What is an HSA catch-up contribution?

    HSA-eligible individuals age 55 or older during the tax-year can contribute an additional $1,000 annually.

  • My spouse is 55 years or older. How can we take full advantage of HSA catch-up contributions?

    Only the HSA owner can make a catch-up contribution, so if your spouse is eligible to make a catch-up contribution and you’re not, your spouse will need to open their own HSA to make a catch-up contribution. If both you and your spouse are 55 years or older during the tax-year, you can both make a catch-up contribution to the HSAs you each own.

  • How can I make a one-time IRA contribution to my HSA?

    You can make a once-in-a-lifetime5 contribution to your HSA from your IRA. This is sometimes called a "qualified HSA funding distribution from an IRA or a rollover from an IRA." These contributions are not subject to federal income taxes or the 10% penalty for early withdrawals. If you choose to do a one-time IRA contribution, you can effectively use your IRA money to pay for medical expenses, such as a major unexpected expense, without having to pay federal income taxes or penalties on it, as you would if you took an early IRA distribution to pay for that expense. However, contributions from an IRA will count toward the IRS's annual limits on HSA contributions—unlike a rollover between two HSAs—and those IRA contributions are not taxdeductible.

    • Fidelity IRA to Fidelity HSA transfers: Contact your Fidelity IRA representative to initiate a transfer of your Fidelity IRA to your Fidelity HSA.
    • External (non-Fidelity) IRA to Fidelity HSA transfers: Request a one-time distribution from your non-Fidelity IRA and have your IRA custodian send a check made payable to Fidelity Management Trust Company (or FMTC), FBO [your name]. Also include a deposit slip or letter of instruction with the check. Include the account number and the contribution tax year in the check memo field when you mail the check to Fidelity. Learn how to deposit a check by mail. If your IRA custodian needs other instructions, please call a Fidelity HSA representative.
  • Where can I find my Fidelity HSA account number to make contributions to my Fidelity HSA?

    Your account number can be found on your Account Summary page when you log into Fidelity.com. This account number can only be used for depositing money in your HSA, not for spending your HSA money. For further information and instructions, see our resource on determining your routing and account numbers.

  • What is the routing number for making contributions to my Fidelity HSA?

    The Fidelity routing number is 101205681. This routing number can only be used to deposit money in your HSA, not for spending your HSA money. For further information and instructions, see our resource on determining your routing and account numbers.

  • What happens if I contribute more than the IRS's annual limits to my HSA?

    If you contributed above the IRS's annual limits unintendedly, submit a completed "Fidelity HSA® Return of Excess ContributionLog In Required" form to Fidelity in accordance with applicable instructions. If you take no action until you file taxes, you’ll be responsible for paying taxes on and may be penalized for the amount you contributed above the IRS’s annual contribution limits.

HSA spending

Fidelity HSA debit cards

HSA cash

  • What is my core position?

    Opening a Fidelity account automatically establishes a core position which is needed for processing cash transactions such as deposits and withdrawals in and out of your account. Think of it like a wallet that you can access for trading, investing, or withdrawals. A benefit of the core position is that it allows you to earn interest or a yield, depending on which core option you choose.

  • What are the options on my core position?

    When you open a new Fidelity Personal HSA, we automatically put your uninvested cash into the Fidelity® Government Cash Reserves but you can also choose another cash option. Understanding the differences between your core options can help you make the choice that's right for you. Below are the HSA core options available to you:

    Fidelity® Government Cash Reserves (FDRXX) money market fund.6

    • Money market funds are mutual funds that invest in short-term debt securities issued by short-term, high-quality entities that borrow money to repay principal and interest to investors within a short time period. Money market funds have different characteristics than a bank sweep so read the fund's prospectus carefully.

    or

    Fidelity's FDIC Insured Deposit Sweep Program7

  • What are the rates or yields on my core position?

    Interest rates or yields may vary due to market conditions. View the latest.

  • How do I change my core position?

    The option to choose your position appears during account opening; however, you can also change it at any time.

    • Log in to Fidelity.com and select your HSA account. In the Positions tab, select Core or Cash.
    • Select the Change core position button.
    • Select FDIC or Fidelity Cash Reserves (FORXX), then click "Preview order," and "Submit."

    Switching is free and will not change your ability to access or invest this money.

HSA investing

  • What can I invest my HSA in?

    Fidelity gives you broad investing options, including our Fidelity HSA Funds to Consider. These are professionally selected funds for HSA investing, all with waived investment minimums and no transaction fees. Other HSA investing options include single-fund options, such as our target date funds and target allocation funds, as well as our entire brokerage lineup, which includes mutual funds, ETFs, stocks, bonds, US Treasuries, FDIC-insured CDs, and options.

  • Is there a minimum balance for investing my HSA money?

    There is no minimum balance required to start investing your HSA money. However, certain mutual funds may have minimum investment requirements.

  • Can my HSA lose money?

    The SIPC protects your uninvested HSA money, up to $500,000.8 If you choose to invest some or all of your HSA money, those investments could lose money. All investing involves risk, including risk of loss.

  • How often can I change my HSA investments?

    You can buy and sell your HSA investments as often as you like. However, you will be subject to standard commissions and investment-related fees. See www.fidelity.com/commissions for more information.

  • How quickly can I access my invested HSA money?

    Accessing your invested HSA money is as simple as selling your investments in the same way you’d sell any other investment. The money should be available for withdrawal when the trade settles, usually within a few business days.

HSA taxes

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