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. There are zero account fees and zero account minimums for Fidelity HSAs®
offered through Fidelity.com to individuals and employers. There may be commissions, interest charges, and other expenses associated with transacting or holding specific investments (e.g., mutual funds), or selecting certain account features or types (e.g., managed accounts). When a Fidelity HSA®
is offered as part of an employer’s benefits package (which occurs through NetBenefits®
), Fidelity charges the employer a recordkeeping fee. This is a common fee charged by HSA providers. This fee may be up to $48/year, but it could be reduced or waived depending on the HSA balance. Employers may pass this fee on to their employees. Contact the employer for more information. Accounts that have been opened through, or are serviced by, an intermediary, or in connection with your workplace benefits, may incur additional fees or restrictions. Account minimums may apply to certain investments, including the purchase of some Fidelity mutual funds that have a minimum investment requirement. If you choose to invest in mutual funds, underlying fund expenses still apply. For more information and details, see the fund's prospectus and/or www.fidelity.com/commissions
† When you open a new Fidelity HSA, we automatically put your uninvested cash into Fidelity Government Cash Reserves unless you choose another option. 7-day yield is as of the date quoted and subject to change.
**Minimum investment requirements are based on information on each provider's website as of May 29, 2023. Investment services may be provided by third-party firms.
‡ HealthEquity APY reflect the "Enhanced Rates" default sweep for a $2,000 average HSA balance as of May 29, 2023 per the HealthEquity website disclosures (available to access for existing customers). Enhanced Rates option consists of interest-bearing group annuity contracts issued by participating insurance companies for the customer's HSA cash balance Principal and interest are subject to risk of loss and not covered by deposit insurance.
§ Optum APY reflect the "eSaver" default sweep for a 2,000 average HSA balance as of May 29, 2023 per the Optum Bank website disclosures (available to access for existing customers). Interest rates are subject to change.
» Lively APY reflect the standard interest rate default sweep for a $2,000 average HSA balance as of May 29, 2023 per the Lively website of https://support.livelyme.com/hc/en-us/articles/4405466272667-What-is-the-standard-interest-rate-for-a-Lively-HSA-. Interest rates are subject to change.
# There may be funds that require a minimum amount to invest, but Fidelity does not require a minimum to start investing.
4. 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.
5. Investor's Business Daily identified best HSAs based on account features, customer reviews and benefit consultants' input. Fidelity HSA was ranked best in widest investment options, low fees, best savings rates, zero investment threshold and access to professional management as of November 14, 2022.
6. Morningstar rated 10 retail HSA providers for HSAs as a spending account to cover current medical costs and HSAs as an investment account to save for future medical expenses. Results published in "2019 Health Savings Account Landscape", "2020 Health Savings Account Landscape", "2021 Health Savings Account Landscape”, and “2022 Health Savings Account Landscape". These ratings are applicable to the Fidelity HSA® only.
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.
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.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917