Question 1

What is the 'health equity fee' for an HSA?

Accepted Answer

The term 'health equity fee' is not an official IRS or financial term. People use it to ask about the fees charged by the company HealthEquity for managing a Health Savings Account. The main fee is a monthly administration charge. For individual accounts opened directly with HealthEquity, this is $6.00 per month. For employer-sponsored group plans, the fee is typically $2.95 per employee per month, but employers often pay or waive this cost for their staff.

Question 2

How much does HealthEquity charge per month in 2026?

Accepted Answer

In 2026, HealthEquity's primary monthly administration fee is $6.00 for individual accounts. If your HSA is through your job, the employer usually negotiates a group rate of $2.95 per employee each month. Many companies cover this fee as a benefit. You should check your plan documents or ask your HR department to confirm who pays. Remember, this is separate from any investment fees you might incur if you choose to grow your HSA balance beyond cash.

Question 3

Are there investment fees for a HealthEquity HSA?

Accepted Answer

Yes, if you invest your HSA funds. HealthEquity charges a monthly investment fee of 0.03% of your average daily invested balance. This adds up to 0.36% annually. There is a cap of $10.00 per month on this fee. On top of this, the mutual funds or ETFs you select have their own expense ratios, which commonly range from 0.02% to 0.15%. These combined costs reduce your investment returns, so factor them into your long-term growth strategy for retirement healthcare costs.

Question 4

Can I avoid the HealthEquity monthly fee?

Accepted Answer

Sometimes. If your HSA is part of an employer group plan, your company may pay the $2.95 monthly fee for you. For individual accounts, the $6.00 fee is standard. However, some providers like Fidelity offer HSAs with no monthly administration fees. If your HealthEquity fees are high and you are no longer with that employer, you can perform a trustee-to-trustee transfer to a different HSA provider. Be aware HealthEquity charges a $25.00 account closing fee.

Question 5

What is the minimum balance to invest with HealthEquity?

Accepted Answer

For individual or family accounts opened directly, you need a minimum cash balance of $500 before you can start investing. For employer-sponsored plans, the minimum investment threshold is set by your employer and can range from $0 to $2,500. Once you meet the threshold, you can invest funds above that amount. This rule can delay investment growth for new account holders, making it a point to compare when choosing an HSA provider.

Question 6

What other fees does HealthEquity charge?

Accepted Answer

Beyond the monthly and investment fees, HealthEquity has several other charges. Requesting a paper statement costs $1.00 per month. Replacing a lost debit card after the first three free ones costs $5.00. If you close your account, there is a $25.00 fee. Requesting a reimbursement by paper check costs $2.00, while electronic transfers are free. Also, if you accidentally over-contribute and need a refund, there is a $20.00 excess contribution fee.

Question 7

Is the HealthEquity monthly fee per account or per person?

Accepted Answer

The $6.00 monthly administration fee is charged per HSA account. For a family HSA under family HDHP coverage, there is still just one account and one monthly fee. The fee is not charged per person covered by the plan. This is different from some provider structures that might have per-participant charges.

Question 8

Do HealthEquity fees change if I have a family HDHP versus an individual plan?

Accepted Answer

No, the core monthly administration fee does not change based on your type of HDHP coverage. A HealthEquity HSA for family coverage has the same $6.00 monthly fee as an account for self-only coverage. However, your contribution limit is higher with family coverage ($8,750 for 2026), which can make the relative cost of the fee a smaller percentage of your total savings.

Question 9

What is the paper statement fee, and how do I avoid it?

Accepted Answer

HealthEquity charges a $1.00 fee each month if you opt to receive paper account statements by mail. To avoid this fee, you must consent to electronic delivery (e-statements) through your online account portal. You can typically access statements for the current year and several prior years online. This is a simple switch that saves $12 annually.

Question 10

How does the debit card replacement fee work?

Accepted Answer

HealthEquity provides the first three debit card replacements for free. Starting with the fourth replacement card request within your account's lifetime, a $5.00 fee is charged for each new card. This fee applies if the card is lost, stolen, or damaged. To avoid it, keep your card in a safe place and consider using electronic payments or reimbursement requests instead for eligible expenses.

Question 11

When would I pay an excess contribution fee?

Accepted Answer

You pay a $20.00 fee if you need HealthEquity to process a return of excess contributions. This happens if you contribute more than the IRS annual limit ($4,400 self or $8,750 family in 2026, plus catch-up). To avoid the fee and a 6% IRS excise tax, monitor your contributions carefully and request a correction before the tax filing deadline. You can sometimes withdraw the excess yourself without provider assistance.

Question 12

What does the 0.03% monthly investment fee actually cost me?

Accepted Answer

The 0.03% monthly fee is an annual rate of 0.36%. On a $5,000 invested balance, you would pay about $18 per year ($5,000 * 0.0036). On a $25,000 balance, you would pay $90 per year. However, the fee is capped at $10 per month ($120 per year). So, once your invested balance reaches about $33,333, your fee effectively stops increasing, which benefits those with larger HSA investment portfolios.

Question 13

Can I choose my own investments with HealthEquity?

Accepted Answer

Yes, but within a menu. HealthEquity offers a curated list of mutual funds and ETFs for you to choose from. You cannot buy individual stocks or securities outside their platform. The available funds typically have low expense ratios, from 0.02% to 0.15%. You allocate your invested dollars among these options, similar to a 401(k). Your employer's specific plan might have a slightly different fund lineup.

Question 14

Is there a fee to sell investments or rebalance my HSA portfolio?

Accepted Answer

HealthEquity does not charge a transaction fee or commission for buying or selling the funds within their investment menu. You can rebalance your portfolio without a direct trading cost. However, the underlying funds have their own management fees (expense ratios), and the 0.03% monthly investment fee always applies to your total invested balance, regardless of trading activity.

Question 15

What happens if my balance falls below the investment threshold?

Accepted Answer

If your cash balance drops below the minimum required amount ($500 for direct accounts or your employer's set threshold), you generally cannot make new investments. Your existing investments remain invested. However, if you need to sell invested funds to cover a medical expense and it causes your cash balance to go below the threshold, you may be locked out of new investments until you build your cash back up.

Question 16

How do HSA investment fees compare to a 401(k) or IRA?

Accepted Answer

HealthEquity's combined fees (0.36% + fund expenses) are often higher than fees for a typical low-cost IRA from providers like Vanguard or Fidelity, where you might pay just the fund expense (often under 0.10%). Some 401(k) plans have similar all-in fees. This difference highlights why shopping for an HSA provider is important if you plan to invest long-term for retirement healthcare costs.

Question 17

What is the difference between a transfer and a rollover, fee-wise?

Accepted Answer

A trustee-to-trustee transfer moves funds directly from HealthEquity to another HSA provider. HealthEquity charges a $25.00 account closing fee for this service, but the transfer itself avoids taxes and penalties. A 60-day indirect rollover is where you take a distribution and must redeposit it into another HSA within 60 days. This avoids the $25 fee but is riskier; if you miss the deadline, it becomes a non-qualified withdrawal subject to income tax and a 20% penalty.

Question 18

Are there fees for contributions or for using the debit card at a point of sale?

Accepted Answer

No. HealthEquity does not charge a fee to receive contributions, whether via payroll deduction, bank transfer, or check. Using your HealthEquity HSA debit card at a doctor's office, pharmacy, or other eligible merchant also does not incur a transaction fee from HealthEquity. The merchant may charge a fee, but that is separate. Always keep receipts to prove eligibility in case of an IRS audit.

Question 19

What does the reimbursement check fee cover?

Accepted Answer

If you pay for a medical expense out-of-pocket and later request HealthEquity to send you a paper check as reimbursement, they charge a $2.00 processing fee per check. To avoid this, always choose electronic funds transfer (EFT) to your linked bank account, which is free. This encourages you to use the 'pay yourself back' model electronically, keeping your money invested longer.

Question 20

Can my employer reimburse me for HealthEquity fees?

Accepted Answer

Yes, an employer can reimburse employees for HSA administration fees as a tax-free benefit under an accountable plan. Many employers with group plans simply pay the fee directly to HealthEquity so employees never see it. If you are self-employed or your employer does not pay, you cannot deduct the $6 monthly fee as a separate itemized deduction. The fee is simply paid from your HSA assets, reducing your tax-free balance.

Question 21

How do I find my exact fee schedule on the HealthEquity website?

Accepted Answer

Log into your HealthEquity member portal. Look for a document titled 'Account Agreement,' 'Fee Schedule,' or 'Schedule of Fees' in the documents or resources section. Your specific fee schedule may differ slightly based on whether your account is individual or employer-sponsored. If you cannot find it, contact member services. Do not rely on generic web searches, as fees can vary by plan year and employer contract.

Question 22

How do HealthEquity fees compare to Fidelity or Lively?

Accepted Answer

Fidelity and Lively are known for offering HSAs with no monthly administration fees and no minimums to invest. HealthEquity's $6 monthly fee and $500 investment threshold can make it more expensive, especially for smaller balances. However, if your employer subsidizes HealthEquity's fees, it may be the best option due to seamless payroll integration. Always compare the total cost, including investment fees, based on your expected account balance.

Question 23

Should I switch from HealthEquity to a no-fee HSA?

Accepted Answer

Consider switching if you are no longer with the employer that sponsored the account, you have a sizable balance, and you plan to invest. The $72 annual admin fee plus investment fees can significantly impact growth over decades. Calculate the transfer closing fee ($25) against your first year's savings. Also, check if your new provider accepts inbound transfers and offers a comparable investment menu. For small balances used for immediate expenses, switching may offer less benefit.

Question 24

What are the main advantages of staying with HealthEquity?

Accepted Answer

The primary advantage is integration. If your current employer uses HealthEquity, contributions via payroll deduction are automatic and avoid FICA taxes (for W-2 employees). The interface may link directly with your HDHP claims. Your employer might also pay the fees or offer a better investment threshold. For ease of management and guaranteed tax savings on contributions, staying can be simpler than managing a separate account.

Question 25

Do other providers charge investment fees like HealthEquity's 0.36%?

Accepted Answer

Many HSA providers that offer investment options charge an additional fee, often called a 'wrap fee' or 'account fee,' similar to HealthEquity's 0.36%. However, some, like Fidelity, charge no additional fee beyond the expenses of the funds you choose. This makes provider comparison critical. A 0.36% fee on a $50,000 portfolio costs $180 per year, which over 20 years could reduce your ending balance by thousands of dollars due to lost compound growth.

Question 26

If I have an old HSA from a previous job at HealthEquity, what are my options?

Accepted Answer

You have three options. First, leave it at HealthEquity and pay the $6 monthly fee. Second, transfer it to your new employer's HSA provider (if they allow it). Third, transfer it to a low-cost provider you choose, like Fidelity. The third option often gives you the most control and lowest fees. Before initiating a transfer, ensure you have a clear list of your eligible medical expenses documented, as you'll need to manage reimbursements from the new provider.

health equity fees: Your Questions Answered

Understanding HealthEquity Fee Structure

Investing HSA Funds with HealthEquity

Account Management & Operational Costs

Comparing HealthEquity with Other HSA Providers

Summary

Pro Tips

Quick Answers

What is the 'health equity fee' for an HSA?

How much does HealthEquity charge per month in 2026?

Are there investment fees for a HealthEquity HSA?

Can I avoid the HealthEquity monthly fee?

What is the minimum balance to invest with HealthEquity?

What other fees does HealthEquity charge?

Related Resources

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