Question 1

What are the Fidelity HSA contribution limits for 2026?

Accepted Answer

For 2026, Fidelity's published HSA contribution limits match the IRS inflation-adjusted figures. You can contribute up to $4,400 if you have self-only HDHP coverage. The limit for family coverage is $8,750. If you are age 55 or older, you can add an extra $1,000 catch-up contribution to either limit. This means an eligible 55+ individual can contribute up to $5,400 for self-only or $9,750 for family coverage.

Question 2

Are there any fees for a Fidelity HSA?

Accepted Answer

Fidelity states there are zero account fees and zero account minimums for individual HSAs opened directly through Fidelity.com. However, employer-sponsored plans may be charged an administrative fee of up to $12 per quarter ($48 annually) unless your employer pays it. For managed portfolios through Fidelity Go HSA, there is no advisory fee for balances under $25,000. For balances of $25,000 and above, the annual advisory fee is 0.35%.

Question 3

What is the interest rate on a Fidelity HSA cash balance?

Accepted Answer

As of April 2026, Fidelity publishes several default cash options with different yields. The default Government Money Market Fund yields 3.37%. The Enhanced Rates Sweep APY is 0.10%, while the Standard HSA Interest Rate is 0.06%. The Standard Sweep APY is 0.02%. It is important to check which cash core position your specific Fidelity HSA account uses, as the yield difference is significant.

Question 4

Can I roll over an FSA or IRA into my Fidelity HSA?

Accepted Answer

You cannot transfer a Flexible Spending Account (FSA) balance into an HSA. However, you can perform a once-in-a-lifetime qualified funding distribution from an IRA into your HSA. This move is not subject to federal income tax or the 10% early-withdrawal penalty, but it counts toward your annual HSA contribution limit. This rule is specific and can be a strategic way to fund your HSA if you have IRA assets.

Question 5

How do I know if I'm eligible to open a Fidelity HSA?

Accepted Answer

To be eligible to open and contribute to any HSA, including one with Fidelity, you must be covered by an HSA-eligible High-Deductible Health Plan (HDHP). For 2026, an HDHP must have a minimum deductible of $1,700 for self-only or $3,400 for family coverage. You cannot have any other disqualifying health coverage, be enrolled in Medicare, or be claimed as a dependent on someone else's tax return. Fidelity provides tools to check your HDHP eligibility.

Question 6

What happens if I'm only HSA-eligible for part of the year?

Accepted Answer

Fidelity follows the IRS proration rule. If you are eligible for only part of the year, your contribution limit is prorated based on the number of eligible months. You count the months you were eligible on the first day of each month, divide by 12, and multiply by the annual limit. There is also a special last-month rule that allows you to contribute the full annual limit if you are eligible on December 1st, but this requires you to remain eligible during a testing period.

Question 7

Do employer contributions count toward my HSA limit?

Accepted Answer

Yes. The IRS annual limit is the total allowed from all sources. This includes your own payroll deductions, contributions you make directly, and any contributions made by your employer. You must monitor the total going into all your HSA accounts to avoid exceeding the cap, which could trigger tax penalties. Fidelity's contribution tracking can help, but you are ultimately responsible for the aggregate total.

Question 8

How do I open a Fidelity HSA account?

Accepted Answer

You can open a Fidelity HSA account online at Fidelity.com. The process involves providing personal information, confirming your HSA eligibility based on your HDHP coverage, and designating beneficiaries. The account can be opened as an individual or, if available, through your employer's plan. There are no account minimums to open.

Question 9

Can I have more than one HSA?

Accepted Answer

Yes, you can have multiple HSA accounts. However, the annual IRS contribution limit applies to the total across all accounts. Managing multiple accounts requires careful tracking to avoid over-contributing. Many people consolidate old HSAs into a single Fidelity HSA account to simplify management and reduce fees.

Question 10

What is the difference between an HSA and the Fidelity Go HSA?

Accepted Answer

A standard Fidelity HSA is a self-directed account where you choose your own investments. Fidelity Go HSA is a robo-advisor service that creates and manages a portfolio for you based on your goals. The Go service has no advisory fee for balances under $25,000 and a 0.35% annual fee for balances at or above that threshold.

Question 11

How long does it take to transfer an existing HSA to Fidelity?

Accepted Answer

A direct transfer between custodians typically takes two to four weeks. You initiate the process from your Fidelity HSA account by completing a transfer form. To avoid a taxable distribution, always choose a direct trustee-to-trustee transfer, not a 60-day rollover where you handle the funds yourself.

Question 12

Can my spouse and I have a joint Fidelity HSA?

Accepted Answer

No, HSAs are individual accounts. Even with family HDHP coverage, each spouse can open their own HSA. The total contributions to both accounts must not exceed the single family limit ($8,750 for 2026). You cannot have a jointly owned HSA, but you can name each other as beneficiaries.

Question 13

What changed in the HSA limits from 2025 to 2026?

Accepted Answer

The self-only HSA contribution limit increased by $100, from $4,300 in 2025 to $4,400 in 2026. The family limit increased by $200, from $8,550 to $8,750. The catch-up contribution for those 55 and older remains unchanged at $1,000. These are the figures published by Fidelity and confirmed by IRS guidance.

Question 14

What is the 'last-month rule' for HSA contributions?

Accepted Answer

The last-month rule states that if you are eligible for an HSA on December 1st of a given year, you can contribute the full annual limit for that year. However, you must then remain eligible for the entire following calendar year (the testing period). If you fail the test, the extra contributions become taxable and subject to a 10% penalty.

Question 15

How are HSA contributions treated for taxes?

Accepted Answer

HSA contributions are tax-deductible if made directly. Payroll contributions are made pre-tax, reducing your taxable income. Earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free. This triple tax advantage is unique to HSAs. Contributions and earnings are reported on IRS Form 8889.

Question 16

What happens if I over-contribute to my Fidelity HSA?

Accepted Answer

Over-contributions are subject to a 6% excise tax each year they remain in the account. To avoid this, you must remove the excess contribution and any associated earnings before your tax filing deadline. Fidelity can help with the removal process, but you must calculate the excess amount and report it correctly on your taxes.

Question 17

Can I make prior-year contributions to my Fidelity HSA?

Accepted Answer

Yes. You can contribute for the previous tax year up until the federal tax filing deadline, typically April 15. When making a contribution during this period, you must clearly designate which tax year it applies for. Fidelity's contribution interface allows you to select the correct year to ensure proper tax reporting.

Question 18

What can I invest in with my Fidelity HSA?

Accepted Answer

Fidelity offers a full brokerage platform for HSA investments. You can invest in mutual funds, ETFs, stocks, and bonds. There is no separate list of HSA-specific funds; you have access to Fidelity's extensive investment universe. This allows you to build a diversified portfolio for long-term healthcare savings or retirement.

Question 19

Should I invest my HSA funds or keep them in cash?

Accepted Answer

This depends on your time horizon and risk tolerance. Keep enough in a stable cash option to cover your health plan's deductible and expected near-term medical expenses. Funds you don't expect to need for years or decades can be invested for growth, similar to a retirement account, to build a nest egg for future healthcare costs.

Question 20

How does the 3.37% money market yield work?

Accepted Answer

The 3.37% yield (as of April 2, 2026) is for the Fidelity Government Money Market Fund. This is a variable rate that changes with market conditions. It is not a guaranteed interest rate. This fund invests in high-quality short-term government securities and is a low-risk option for holding cash while earning a return better than a standard savings sweep.

Question 21

What is the best investment strategy for a retirement-focused HSA?

Accepted Answer

For a retirement-focused HSA, treat it like a supplemental retirement account. Invest in a low-cost, broad-market index fund or ETF for long-term growth. Pay medical expenses out-of-pocket now if you can afford to, and let the HSA balance grow tax-free. Save your receipts; you can reimburse yourself tax-free for those expenses at any time in the future.

Question 22

Are there any trading restrictions in a Fidelity HSA?

Accepted Answer

Fidelity HSAs follow the same trading rules as other retail brokerage accounts. This includes rules for frequent trading in certain mutual funds and standard settlement periods for stocks and ETFs. There are no additional HSA-specific trading restrictions, but you should always consider your investment choices within the context of the account's purpose.

Question 23

What medical expenses are HSA-eligible?

Accepted Answer

Eligible expenses include deductibles, copays, dental and vision care, mental health services, prescription medications, and many over-the-counter items. The IRS defines eligible expenses in Publication 502. Common eligible items include acupuncture, birth control, and hearing aids. Gym memberships and cosmetic procedures are generally not eligible.

Question 24

How do I pay a bill directly from my Fidelity HSA?

Accepted Answer

Fidelity provides a debit card linked to your HSA. You can use this card at the point of sale for eligible expenses. Alternatively, you can pay the bill yourself and then reimburse yourself from the HSA by initiating a transfer to your personal bank account. Always keep the receipt for the medical expense for your tax records.

Question 25

What happens if I use my HSA for a non-eligible expense?

Accepted Answer

If you withdraw funds for a non-qualified expense before age 65, the amount is subject to ordinary income tax plus a 20% penalty. After age 65, you only pay ordinary income tax on non-qualified withdrawals, similar to a traditional IRA. The penalty no longer applies, making the HSA functionally similar to a retirement account.

Question 26

Do I need to submit receipts to Fidelity?

Accepted Answer

No, Fidelity does not require or review your receipts. It is your responsibility to save documentation proving that withdrawals were for qualified medical expenses. You must provide this documentation to the IRS if you are audited. Organizing digital copies of receipts is a best practice for all HSA owners.

Question 27

Can I use my HSA to pay for my spouse's or dependents' medical expenses?

Accepted Answer

Yes. You can use your HSA funds tax-free for the qualified medical expenses of your spouse and tax dependents, even if they are not covered by your HDHP. This is a major benefit for families. The expenses just need to be for individuals you can claim on your tax return.

fidelity hsa account: Your Questions Answered

Fidelity HSA Account Basics & Setup

Contributions, Limits & Tax Rules

Investing & Growing Your Fidelity HSA

Using & Withdrawing from Your HSA

Summary

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