Fidelity HSA Account Checklist (2026) | HSA Tracker

Verify your health plan is an HSA-eligible HDHP for 2026.

Not all high-deductible plans qualify. For 2026, the minimum deductible is $1,700 (self-only) or $3,400 (family). The out-of-pocket max cannot exceed $8,500 (self-only) or $17,000 (family). Check your plan's Summary of Benefits.

Confirm you have no other disqualifying health coverage.

Being covered by a spouse's non-HDHP plan, a general-purpose FSA, or a Medicare plan makes you ineligible. A limited-purpose FSA for dental/vision is acceptable, but you must check carefully.

Check that you are not enrolled in Medicare (Parts A, B, or D).

Medicare enrollment, even if you are still working, makes you ineligible to contribute to an HSA. You can keep and use an existing HSA, but you cannot add new funds.

Ensure you are not claimed as a dependent on someone else's tax return.

If someone else can claim you as a dependent for the tax year, you cannot make HSA contributions, regardless of your income or insurance status.

Determine your eligible start date if coverage began mid-year.

Your contribution limit is typically prorated by month. You are considered eligible on the first day of the month you have qualifying HDHP coverage. This determines your maximum contribution.

Understand the 'last-month rule' and its testing period.

If you are eligible on December 1, 2026, you can contribute the full annual limit. However, you must remain HSA-eligible for a testing period from December 2026 through December 2027, or penalties apply.

Review if you have access to an employer-sponsored HSA.

Contributing via payroll deduction avoids FICA taxes (7.65%), a major savings. If your employer offers a plan, you may still want a Fidelity HSA for investing, but you should fund primarily through payroll.

Open your Fidelity HSA account online.

The process is straightforward on Fidelity.com. Have your personal information, Social Security Number, and bank account details ready for funding. You can open an account even without immediate funding.

Link your external bank account for electronic transfers.

This allows you to make after-tax contributions easily and is required to process rollovers or transfers from other HSA providers. Verify the small deposits to confirm the link.

Calculate your exact 2026 contribution limit.

For self-only HDHP coverage, the limit is $4,400. For family coverage, it's $8,750. Add $1,000 if you are 55 or older. Remember, this limit includes all contributions from you and your employer.

Set up payroll deductions if available through your employer.

This is the optimal method. Contributions are made pre-tax, reducing your taxable income. They also avoid the 7.65% FICA tax, which after-tax contributions do not.

Initiate a direct transfer from an old HSA provider.

To consolidate HSAs without tax, complete a 'trustee-to-trustee transfer.' Contact Fidelity to start the process; they will pull the funds from your old provider. There is no limit on these transfers.

Consider a one-time IRA-to-HSA qualified funding distribution.

This is a rare but useful option. You can move funds from an IRA to your Fidelity HSA tax-free, once in a lifetime. It counts toward your annual contribution limit but can jump-start your balance.

Make a manual after-tax contribution if needed.

If you cannot use payroll, you can contribute after-tax dollars and claim the deduction on your Form 8889. Keep records, as you must report this on your tax return.

Select your core cash position for uninvested funds.

Do not accept the default. Actively choose the 'Money Market Fund Government Cash Reserves' for a 3.37% yield instead of the default sweep options that yield as low as 0.02%.

Track the sum of all HSA contributions from all sources.

You are responsible for ensuring your total contributions (personal + employer) do not exceed the annual limit for your coverage type. Fidelity only tracks what goes into their account.

Mark your calendar for the contribution deadline.

You have until your federal tax filing deadline (typically April 15 of the following year) to make contributions for the prior tax year. Do not wait until the last minute.

Save Form 5498-SA from Fidelity each May.

Fidelity will send this form reporting your prior year's total contributions. Use it to verify the numbers on your tax return (Form 8889). Do not confuse it with a W-2.

Reconcile your records if you have multiple HSAs.

If you have an employer HSA and a Fidelity HSA, you must add contributions from both to stay under the single IRS limit. Create a simple spreadsheet to track this.

Correct any excess contributions before tax day.

If you over-contribute, contact Fidelity to remove the excess and any earnings. If you do not, the IRS charges a 6% excise tax each year the excess remains.

Note any change in HDHP coverage during the year.

Losing HDHP coverage, gaining other insurance, or turning 65 and enrolling in Medicare changes your eligibility mid-year. This likely prorates your contribution limit.

Keep digital copies of all HDHP plan documents.

In an audit, you must prove your HDHP was HSA-eligible. Save the plan's Summary of Benefits and Coverage (SBC) for each year you contribute.

Decide on an investment threshold for your cash buffer.

Determine how much to keep in cash for near-term medical expenses (e.g., your annual deductible). Any balance above that threshold should be considered for long-term investment.

Research and select Fidelity mutual funds or ETFs.

Fidelity offers thousands of commission-free funds. Consider low-cost, broad index funds for core holdings. The investment menu is similar to a standard brokerage account.

Evaluate Fidelity Go HSA for automated management.

This robo-advisor builds and manages a portfolio for you. It has no advisory fee for balances under $25,000. For $25,000+, the 0.35% annual fee may be worth it for hands-off management.

Set up automatic investments from your core cash position.

Automate your strategy. You can schedule monthly transfers from the cash core to your chosen mutual funds, applying dollar-cost averaging without manual effort.

Review your asset allocation relative to your age and risk tolerance.

Your HSA is a long-term savings vehicle. Treat its allocation like a retirement account. A younger person might choose aggressive growth, while someone closer to using the funds may be more conservative.

Understand the tax treatment of HSA investments.

All investment growth and dividends within the HSA are tax-free if used for qualified medical expenses. This is a unique triple tax advantage no other account offers.

Consider using the HSA for retirement healthcare savings.

After age 65, you can withdraw funds for any reason penalty-free, paying only income tax (like a traditional IRA). This makes it a powerful supplemental retirement account.

Verify the expense is HSA-eligible before reimbursing yourself.

The IRS Pub 502 lists eligible expenses. Common eligible items include deductibles, copays, dental, vision, and many OTC medications. Gym memberships and cosmetic procedures are not eligible.

Pay the provider directly with your Fidelity HSA debit card.

This is the simplest method. The transaction is clearly for a medical purpose. Ensure the merchant code is correct; sometimes pharmacies code as general merchandise.

Pay out-of-pocket and save the receipt for future reimbursement.

This strategy maximizes growth. You let funds grow tax-free for years, then reimburse yourself later for past expenses. You must have the HSA open when the expense was incurred.

Digitally file every receipt and explanation of benefits (EOB).

Create an 'HSA Receipts' folder. Save a scan or photo of each receipt, EOB from insurance, and note the date, amount, provider, and eligible service. The IRS can audit three years back.

Log each withdrawal in your own tracking system.

Fidelity provides statements, but your own log (spreadsheet or app) should link each withdrawal to a specific receipt and expense. This makes audit preparation simple.

Know the rules for non-medical withdrawals before age 65.

If you withdraw funds for non-qualified expenses before age 65, the amount is subject to income tax plus a 20% penalty. This penalty is steep, so avoid it.

Review Fidelity's annual tax forms for accuracy.

Fidelity will issue Form 1099-SA for distributions and Form 5498-SA for contributions. Check that the amounts match your records before filing your taxes.

Consider using HSA funds for Medicare premiums.

After age 65, you can use HSA funds tax-free to pay for Medicare Part B, Part D, and Medicare Advantage premiums. This is a major benefit not available with other accounts.