Health Savings Accounts (HSAs)

A Health Savings Account (HSA) is a tax-advantaged account that lets you save and pay for qualified medical expenses—for yourself, your spouse, or your dependents.

Your HSA funds grow tax-free, roll over every year, and can even be invested for long-term growth—just like a retirement account. You keep the money forever, even if you change jobs or health plans.

You don’t need an employer to offer one—as long as you have a qualified high-deductible health plan, you can open an HSA on your own and start building your health and wealth today.

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HSA Eligibility & 2025 Limits

Health Savings Accounts (HSA) -- 2025 Quick Guide

Use this checklist to see if you qualify and view 2025 limits.

What is an HSA?

An HSA is a tax-advantaged account you can use to pay or reimburse qualified medical expenses for yourself, your spouse, and your dependents. Funds grow tax-free, and qualified withdrawals are tax-free.

2025 rules

Quick Eligibility Check

If you qualify on December 1, you're treated as eligible for the full year--stay eligible through the next year to avoid penalties.

2025 HDHP Requirements

RequirementSelf-onlyFamily
Minimum deductible$1,650$3,300
Maximum out-of-pocket$8,300$16,600

Family plans with per-person deductibles must have at least $3,300 per person to qualify.

2025 Contribution Limits

Coverage / Age2025 Limit
Self-only, under 55$4,300
Self-only, age 55+$5,300
Family, under 55$8,550
Family, age 55+$9,550

Catch-up contribution: $1,000 per person age 55 or older.

Using HSA Funds

  • Tax-free for qualified medical expenses.
  • Taxed + 20% penalty for non-qualified use (penalty waived after age 65).
  • Not for premiums (some exceptions for long-term care, COBRA, or Medicare premiums).

Key Notes

  • Information applies to 2025 only.
  • Confirm with your plan provider if your coverage qualifies as an HDHP.

HSA Features

Lively Affiliate Partner Package 2025 -- HTML Version

Features & Fees

Category Lively Health Equity Fidelity HSA Bank
Account & Transfer Fees $0 fees; no hidden charges $0 (waived at $2,500); $25 transfer-out $0; no transfer fees $0; $25 fee for closing account
Minimum Balance / Access to First Dollar Investing No minimums $500 invest minimum $10 invest minimum $1,000 invest minimum
Cash Balance Growth Options Available* Available Available Available
Investment Options Full Schwab brokerage + guided funds + Devenir Mutual funds (fees apply); Schwab (plan-dependent) Self-directed brokerage + Managed Brokerage + guided funds (fees apply)
Mobile App Features AI Agent for key tasks, receipt & expense tracking, fast reimbursements Receipt organization and reimbursements; expense tracking Receipt organization and reimbursements; expense tracking Receipt organization and reimbursements

* There is no minimum balance required to invest. However, a $24 annual investment access fee applies if your cash balance is below $3,000. This fee is waived when you maintain at least $3,000 in the HSA cash account. Competitor information is based on publicly available sources as of 10/3/25.

Interest-Earning Cash Options

Balance Tier Lively (FDIC) Lively (HSA Boost) Health Equity Fidelity HSA Bank
Cash Growth Option Available Yes Yes Yes Yes Yes
Tiered Interest Structure Yes Yes Yes No Yes
FDIC-Insured Cash Option Yes No Yes Yes Yes
Flexibility to Choose Option Yes Yes Yes Yes No

Ratings & Reviews

Ratings Lively Health Equity Fidelity HSA Bank
TrustPilot (4.4) -- 1,308 reviews (1) -- 236 reviews (1.3) -- 925 reviews (1.6) -- 30 reviews
G2 (4.7) -- 105 reviews (3.9) -- 8 reviews (4.7) -- 3 reviews N/A
Mobile App Ratings 4.9/5 (iOS), 4.6/5 (Android) -- 5,549 (iOS) / 1,118 (Android) 4.5/5 (iOS), 3.7/5 (Android) -- 13.3k (iOS) / 5,647 (Android) 4.9/5 (iOS), 4.8/5 (Android) -- 13.9k (iOS) / 3,304 (Android) 4.1/5 (iOS), 4.0/5 (Android) -- 947 (iOS) / 534 (Android)
Lively testimonial: "I've had Lively for 6+ years. The platform is intuitive and the service is great… No hidden fees, and easy access to invest my funds as well."
Lively testimonial: "I've been using Lively to manage my HSA since 2020… The mobile app is great--secure and intuitive."
✅
98% Customer retention.
💜
95% CSAT Admins love Lively.

Why Lively?

💲
Transparent, $0 Fees
No monthly fees, no hidden charges, and free transfers.
📱
Modern, Intuitive Experience
Modern dashboard, seamless receipt capture, fast reimbursements, and an AI Agent that helps you manage tasks.
🎧
Support That Delivers
Over 90% of calls answered in under 60 seconds; most issues solved on first touch.
📈
Investment Flexibility & Security
Choose Schwab full brokerage or Devenir guided portfolios. FDIC on cash, SIPC on investments, plus 2-factor auth.

HSA Resorces

HSA Savings

Calculator

Estimate Long-term savings and see how tax advantages grow your balance over time.

HSA Contribution Calculator

Quickly find out how much you can contribute this year, including catch-up amounts if eligible.

HSA

Guide

Get clear answers on HSAs—how they work, who qualifies, and ways they help save for healthcare now.

HSA Deductibility

HSA Contribution Made By 1040 Deduction?
Employer - Normal W-2 Employee
Tax free employee fringe
Reported as Code "W" on W-2, reduces employee allowable contribution 		No
Employer - 2% S Corp Shareholder
Employer adds to W-2 Box 1 (No FICA), Employee deducts on 1040
Reported as Code "W" on W-2 		Yes
Partner/Member in Partnership
Partnership adds to guaranteed payment of individual who then gets deduction on 1040 		Yes
Employee or Individual - After Tax Yes
Employee - Pre-Tax through Cafeteria Plan
Wage reduction through cafeteria plan gives the effective deduction
Reported as Code "W" on W-2, additional contributions after tax still deductible up to annual maximum 		No
Someone Else for the Benefit of Taxpayer
Account holder gets deduction as if gift received and then deposited to their own HSA 		Yes

HSA Frequently Asked Questions

QWhat is an HSA?

A Health Savings Account (HSA) is a personal, tax-advantaged account you own that's used to pay for qualified medical expenses. Money goes in tax-free, can grow tax-free, and comes out tax-free when used for eligible costs. Unused funds roll over every year and stay with you if you change jobs.

QHow does an HSA work?

You contribute pre-tax (or contribute after-tax and deduct it), the balance can earn interest or be invested (if your provider allows), and you can spend the money on qualified expenses anytime. You must be enrolled in a High Deductible Health Plan (HDHP) to contribute.

QIs an HSA the same as health insurance?

No. An HSA is a savings/investment account that works alongside your health insurance. You still need an insurance plan for major medical costs.

QIs an HSA "worth it"?

For many people, yes--the triple tax advantage (tax-deductible contributions, tax-free growth, and tax-free qualified withdrawals) plus year-to-year rollover can make HSAs a powerful tool for current healthcare costs and long-term planning.

QAre HSA contributions tax-deductible or pre-tax?

Payroll contributions are typically pre-tax. If you contribute on your own, you can generally deduct those contributions on your tax return (subject to IRS rules and limits).

QCan I withdraw money anytime?

Yes, but withdrawals are tax-free only when used for qualified medical expenses. Non-qualified withdrawals before age 65 are taxed and usually carry a 20% penalty. After 65, non-medical withdrawals are taxed as ordinary income without the penalty.

QWhat if I accidentally pay a non-qualified expense?

If you're under 65, expect income tax plus a 20% penalty on the amount. If you're 65 or older (or disabled), only income tax applies. If it was a mistake and you can replace the funds before filing taxes, you may be able to correct it--ask your provider about their process.

QDo HSA funds roll over each year?

Yes. There's no "use-it-or-lose-it." Your balance carries forward and the account remains yours if you change jobs or retire.

QDo VA benefits or TRICARE affect HSA eligibility?

Generally, TRICARE makes you ineligible to contribute because it isn't an HSA-qualified HDHP. Recent VA care for a non-service-connected condition can temporarily pause HSA contribution eligibility (typically for 3 months). You can still spend existing HSA funds.

QDo I have to open an HSA if I'm on an HDHP?

No, it's optional. But opening one lets you pay qualified expenses with tax-advantaged dollars--even a small opening deposit can make future eligible costs reimbursable.

QWhat can I use HSA money for?

Qualified medical expenses like doctor visits, prescriptions, dental and vision care, and many OTC items. You can also pay eligible expenses for your spouse and dependents. Always keep receipts for your records.

QIs an HSA the same as an FSA?

No. HSAs require an HDHP, are owned by you, and roll over indefinitely. FSAs are set up by employers, typically don't require an HDHP, and often have "use-it-or-lose-it" rules (with limited exceptions).

Ready to get started?

Opening an HSA is simple—and it could be one of the smartest financial moves you make this year.


Take charge of your health, your savings, and your future.

Start Saving Today!