Lively HSA No Monthly Maintenance Fee Official Checklist

Confirm you are opening an individual HSA, not enrolling through an employer plan.

The $0 monthly maintenance fee is guaranteed only for self-managed individual accounts. Employer plans incur a $2.95 PEPM fee, which fundamentally changes the cost structure and requires different financial planning.

If you are an employee, ask your HR department if your company's Lively plan uses PEPM pricing.

You need to know if your account is subsidized by your employer or if fees are passed through. Understanding this helps you evaluate the total value of your benefits package and plan for any potential costs if you leave the company.

For employers, verify if you have 16 or more enrolled employees for standard PEPM rates.

Lively's standard employer pricing requires 16+ enrolled employees. Groups with 15 or fewer pay a flat $50 monthly fee, which can be more or less expensive per person than the $2.95 PEPM model and impacts your benefits budget.

Check Lively's official 2026 FAQ for the current 'no monthly fees' disclosure.

Provider policies can change. The official FAQ is the primary source of truth. Verifying there ensures you have the most up-to-date information and protects you from relying on outdated third-party articles or summaries.

Understand that employees rolling off a company plan convert to free individual accounts.

This is a major benefit. If you leave your job, your HSA automatically transitions to a $0-fee individual account. You don't need to proactively switch providers or worry about new fees being applied to your existing savings.

Determine if you will use the Schwab self-directed brokerage investment option.

This is the source of the only conditional fee: a $24 annual charge. If you never enroll in the brokerage, you will never incur this fee. Your decision to invest directly impacts your total cost of ownership.

Plan to maintain a $3,000 HSA cash balance if you use the investment option.

This balance threshold waives the $24 annual investment fee. By strategically keeping this cash buffer, you can invest the rest of your funds for growth while maintaining the Lively HSA no monthly maintenance fee official status for your entire account.

Note that there is no minimum balance fee or 'low balance' charge.

Some providers charge fees if your account balance falls below a certain level. Lively does not. This means you can have a $1 balance without penalty, providing flexibility and security for accounts with minimal funds.

Confirm that debit card issuance and transactions are free.

Up to three debit cards are provided with no monthly or per-transaction fees. This allows you and your dependents to pay for eligible expenses directly without incurring costs, making the account more practical for everyday healthcare spending.

Verify that reimbursement requests and account transfers carry no cost.

Submitting receipts for reimbursement and executing trustee-to-trustee transfers to other HSA providers are $0.00 events. This saves you money if you need to access funds manually or decide to consolidate accounts later.

Set your contribution target based on your HDHP coverage type (self-only or family).

The IRS limits are strict and different: $4,400 for self-only and $8,750 for family coverage in 2026. Contributing based on the wrong category is a common error that leads to excess contributions and a 6% IRS penalty each year until corrected.

If you are 55 or older, plan to add the $1,000 catch-up contribution.

This is an additional allowance on top of the standard limit. Forgetting it means leaving tax-advantaged money on the table. Lively's system should allow you to designate these funds, but you are responsible for tracking the total.

Coordinate contributions if both spouses have individual HSA accounts.

The $8,750 family limit is a household total, not per account. If both spouses have HSAs, you must ensure your combined contributions do not exceed the limit. Poor coordination is a frequent audit trigger for families.

Use payroll deductions if available through your employer's Section 125 plan.

Contributions made via payroll deduction bypass FICA taxes (Social Security and Medicare), providing an extra ~7.65% tax savings that you don't get by contributing after-tax funds and deducting later on your Form 8889.

Mark your calendar for the 2026 tax deadline to make prior-year contributions.

You can contribute for the 2026 tax year up until April 15, 2027. This gives you flexibility if you come into extra funds or realize you under-contributed. Lively allows these prior-year contributions, but you must designate them correctly.

Decide on an asset allocation for your HSA investments, treating it as a long-term retirement healthcare fund.

HSAs offer triple tax advantages: tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses. Investing for growth over decades can create a substantial pool of money for healthcare in retirement, far outpacing a cash-only account.

Establish a system to save and categorize receipts for current medical expenses.

You can reimburse yourself from your HSA at any time for qualified expenses incurred after the account was opened. By saving receipts now, you allow your investments to grow tax-free for years, then take a tax-free withdrawal later, effectively creating a stealth retirement account.

Set a reminder to check your cash balance quarterly to ensure it meets the $3,000 waiver threshold.

If your cash balance dips below $3,000, the $24 annual investment fee will be charged. Regular checks let you adjust transfers between cash and investments to maintain the waiver and preserve the account's fee-free status.

Review the list of HSA-eligible expenses annually, including new IRS guidance on OTC items and wellness.

Eligible expenses expand occasionally. Knowing what's covered helps you plan spending and reimbursements effectively. For example, many over-the-counter medications and menstrual care products are now eligible without a prescription.

Consider using the HSA for retirement planning beyond age 65.

After age 65, you can withdraw HSA funds for any reason without the 20% penalty, paying only ordinary income tax (like a Traditional IRA). This makes it a powerful supplemental retirement account if you have minimal medical expenses to reimburse.

Each November, verify you will still be enrolled in an HSA-eligible HDHP for the upcoming year.

HSA eligibility requires a qualified High Deductible Health Plan. If your employer changes plans or you switch insurance during open enrollment, you must confirm the new plan's deductible and out-of-pocket maximums still meet IRS requirements to contribute.

Reconcile your total annual contributions with your W-2 and any personal records.

Before filing taxes, ensure the contribution amount reported by Lively (on Form 5498-SA) matches what you actually contributed. Discrepancies can lead to IRS notices. This is especially important if you made contributions from multiple sources.

Review and update your account's beneficiary designation.

Life changes like marriage, divorce, or new children can make your old beneficiary designation outdated. Keeping this current ensures your HSA assets are distributed according to your wishes without going through probate.

Assess your investment performance and rebalance your portfolio if needed.

Market movements can shift your asset allocation away from your target risk level. An annual review allows you to sell high and buy low to maintain your desired strategy, keeping your long-term healthcare fund on track.

Check for any updates to Lively's fee schedule or policies on their official site.

While the Lively HSA no monthly maintenance fee official policy is confirmed for 2026, providers can adjust terms. An annual check of their pricing page and FAQ protects you from being surprised by new fees or changed conditions for the waiver.