fidelity health savings account Checklist (2026) | HSA

Verify your health plan is an IRS-qualified High-Deductible Health Plan (HDHP).

You can only contribute to an HSA if you are covered by an HDHP. Other types of insurance, like a general purpose FSA or Medicare, make you ineligible.

Check that your HDHP meets the 2026 minimum deductible: $1,700 (individual) or $3,400 (family).

If your plan's deductible is lower than these amounts, it does not qualify as an HDHP, and you cannot make HSA contributions for that year.

Confirm your plan's out-of-pocket maximum does not exceed $8,500 (individual) or $17,000 (family) for 2026.

The IRS sets both a minimum deductible and a maximum out-of-pocket limit for HDHPs. Plans with higher cost-sharing limits do not qualify.

Ensure you are not covered by any other non-HDHP health plan that is not HSA-compatible.

Being covered by a spouse's traditional plan, a general purpose Flexible Spending Account (FSA), or Medicare disqualifies you from HSA contributions, even if you also have an HDHP.

Determine if you are claimed as a dependent on someone else's tax return.

If you can be claimed as a dependent, you are not eligible to contribute to an HSA, regardless of your insurance coverage.

Review your plan documents for any embedded deductibles if you have family coverage.

Some family HDHPs have embedded deductives for individuals. Understand how this works, as it affects when the HSA can be used for individual family members' expenses.

Decide if you will open an individual or family HSA based on your HDHP coverage type.

Your coverage type (self-only vs. family) dictates your contribution limit. Having family HDHP coverage allows you to contribute up to the family limit, even if the account is in one person's name.

Gather required personal information: Social Security Number, date of birth, address.

You will need this standard identification information to complete the online application. Having it ready speeds up the process.

Choose between a single or joint account (note: HSAs are individual accounts).

HSAs can only be owned by one person. You cannot open a joint HSA. Each spouse who wants to contribute must have their own account.

Designate a beneficiary for your Fidelity HSA.

This determines who receives the account assets if you die. For a spouse, it becomes their HSA. For a non-spouse, the account loses its HSA status and becomes taxable.

Opt for paperless statements and document delivery.

This ensures you receive timely tax forms (like Form 5498-SA) and account statements electronically, reducing clutter and making record-keeping easier.

Set up your online login and enable two-factor authentication.

Strong account security protects your sensitive health and financial data. Two-factor authentication adds an extra layer of security beyond just a password.

Link an external bank account for future contributions or transfers.

Linking a checking or savings account allows you to easily make contributions, transfer funds, or process reimbursements. This is a required step for funding the account.

Familiarize yourself with the Fidelity HSA dashboard and mobile app.

Knowing where to find contribution trackers, investment screens, and transaction history helps you manage the account actively rather than setting and forgetting it.

Calculate your maximum 2026 contribution: $4,400 (individual) or $8,750 (family).

Contributing more than these limits triggers a 6% IRS excise tax. This is the first number you need to know before adding any money.

Add $1,000 to your limit if you are 55 or older and not on Medicare.

Catch-up contributions boost your retirement healthcare savings. Remember, if both spouses are eligible, each needs their own HSA to claim their separate $1,000.

Determine if your employer will make contributions and factor that amount in.

Employer contributions reduce the amount you can personally contribute. Your total (you + employer) must stay under the IRS cap.

Set up payroll deductions through your employer if available.

Contributions made via payroll deduction avoid FICA taxes (Social Security and Medicare), giving you an extra ~7.65% tax savings that you don't get with direct contributions.

If self-employed, plan to make direct contributions and claim the deduction on Form 8889.

Self-employed individuals cannot avoid self-employment tax via payroll, but they can deduct HSA contributions on their income tax return, lowering their adjusted gross income.

Schedule monthly contributions to hit your annual target ($366.67/mo individual, $729.17/mo family).

Spreading contributions across the year improves cash flow and mimics a savings habit. It also ensures you don't scramble to make a large lump-sum contribution at year-end.

Mark your calendar for the contribution deadline (typically tax day, April 15 of the following year).

You have until the tax filing deadline to make contributions for the previous year. This allows you to fund your HSA after you know your exact eligibility and income.

Initiate a rollover from any old HSAs at other providers to consolidate.

Rollovers do not count toward contribution limits and can bring all your funds to Fidelity's low-fee platform. Use a direct trustee-to-trustee transfer to avoid tax issues.

Decide on a cash reserve to keep for near-term medical expenses.

Keeping one year's deductible or out-of-pocket maximum in cash ensures you can cover medical bills without selling investments at a potential loss.

Review Fidelity's available investment options (mutual funds, ETFs, stocks).

Fidelity offers thousands of funds, including their own low-cost index funds. Understanding the choices helps you build a portfolio aligned with your risk tolerance and time horizon.

Select low-cost, diversified index funds for the core of your investment portfolio.

Low fees preserve more of your returns. Diversification across asset classes (like U.S. stocks, international stocks, bonds) reduces risk. This is a simple, effective long-term strategy.

Set up automatic investing for contributions above your cash reserve.

Automation ensures new contributions are immediately put to work in the market according to your plan, enforcing disciplined investing and taking emotion out of the process.

Rebalance your HSA investment portfolio once per year.

Over time, some investments will grow faster than others, shifting your asset allocation. Annual rebalancing brings your portfolio back to its target risk level.

Consider your HSA as part of your overall retirement asset allocation.

For long-term savings, your HSA should be coordinated with your 401(k) and IRA investments. Treat it as another tax-advantaged bucket in your retirement plan.

Monitor investment fees and expense ratios within your chosen funds.

Even small differences in fees compound over decades. Aim for expense ratios well below 0.20% for core index funds to maximize your net returns.

Verify an expense is IRS-qualified before using HSA funds.

Paying for non-qualified expenses (like cosmetic procedures or general health supplements) incurs income tax plus a 20% penalty if you're under 65. Always check the IRS Publication 502 list.

Save itemized receipts for every HSA purchase or out-of-pocket medical expense.

The IRS may ask for proof that withdrawals were for qualified medical expenses. Digital or physical receipts with date, provider, service, and amount are your documentation.

Use your Fidelity HSA debit card for direct payments to medical providers.

This is the simplest method, creating a clear audit trail. Ensure the provider accepts the card, as some smaller offices or certain services may not.

Pay out-of-pocket and reimburse yourself later to let funds grow.

This advanced strategy maximizes investment growth. You can reimburse yourself for that expense anytime in the future, even years later, tax-free.

Log reimbursements if you pay out-of-pocket, noting the date of service and amount.

Keeping a separate log or spreadsheet of unreimbursed expenses helps you track your growing 'tax-free reimbursement pool' available for future withdrawal.

Understand that premiums for Medicare Part B, D, and Medicare Advantage are eligible after age 65.

After 65, you can use HSA funds tax-free for Medicare premiums (but not Medigap). This is a major benefit for covering healthcare costs in retirement.

Know that COBRA and long-term care insurance premiums are also eligible expenses.

Your HSA can pay for these specific types of insurance premiums, which can be substantial costs, providing flexibility during job loss or for elder care planning.