With respect to federal taxation only. Contributions, investment earnings, and distributions may or may not be subject to state taxation.
2. Spending HSA money is tax-free when used to pay for qualified medical expenses.
3. Fidelity does not charge account fees to HSA account holders but commissions and other expenses associated with transacting or holding specific investments (e.g., mutual funds) may apply. Refer to the fees and commission schedule for additional detail at www.fidelity.com/trading/commissions-margin-rates
. Fidelity does charge a recordkeeping fee to employers who oﬀer a Fidelity HSA to their employees. This is a common fee charged by HSA providers. Employers may choose to pass that fee on to their employees. At Fidelity, that fee maybe up to $48/year, but it could be reduced or waived depending on the HSA balance.
5. Opening an HSA with a third-party provider, other than your employer, may limit your opportunity to use pre-tax payroll contributions. Although post-tax contributions are federal income tax-deductible, you will be required to pay FICA taxes. This means third-party HSAs may not be as tax-advantaged as employer-provided HSAs.++
The information provided herein is general in nature. It is not intended, nor should it be construed, as legal or tax advice. Because the administration of an HSA is a taxpayer responsibility, you are strongly encouraged to consult your tax advisor before opening an HSA. You are also encouraged to review information available from the Internal Revenue Service (IRS) for taxpayers, which can be found on the IRS website at IRS.gov. You can find IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, and IRS Publication 502, Medical and Dental Expenses, online, or you can call the IRS to request a copy of each at 800.829.3676.
Investing involves risk, including risk of loss.