Question 1

What are the monthly fees for a Lively HSA in 2026?

Accepted Answer

For individual accounts opened directly, Lively charges $0 monthly maintenance fees. However, if your account is sponsored by an employer, there is a $2.95 per enrolled employee monthly fee with a $50 minimum. This means small businesses with fewer than about 17 enrolled employees will still pay the $50 minimum monthly fee. There are no fees for opening, closing, or transferring the account.

Question 2

How does Lively's investment feature work and what are the fees?

Accepted Answer

Lively offers 'first-dollar investing' through an integrated Schwab brokerage account, meaning you can invest any cash amount. However, a key policy change for 2025-2026 introduced a $24 annual fee if your combined HSA cash and investment balance is below $3,000. This fee is waived if your total balance reaches $3,000 or more. There is no separate cash minimum required to start investing, but you must consider this annual charge for smaller balances.

Question 3

What are the cash interest rates for a Lively HSA?

Accepted Answer

Lively offers two interest rate tiers for cash holdings. The standard FDIC-insured option pays between 0.02% APY for balances under $2,500 and 0.12% APY for balances over $10,001. Their 'HSA Boost' option, which is not FDIC-insured, offers higher rates from 0.10% APY to 0.526% APY for the same balance brackets. You must actively choose the Boost option in your account settings, accepting the non-FDIC status for potentially higher yield.

Question 4

How does Lively compare to Fidelity for an HSA?

Accepted Answer

Both Lively and Fidelity charge $0 monthly fees for individual accounts. The main difference is for employer-sponsored plans: Lively charges $2.95 per employee monthly, while Fidelity charges $0 for all accounts. Fidelity also has no investment minimums or balance thresholds for fee waivers, whereas Lively applies a $24 annual fee for balances under $3,000.

Question 5

Is my money safe with Lively HSA Bank?

Accepted Answer

Cash held in Lively's standard savings account is FDIC-insured up to $250,000 per depositor through their partner banks. This insurance protects your principal if a bank fails. Funds you choose to invest through the Schwab brokerage account are SIPC-protected up to $500,000, which covers securities in case the brokerage fails. It is important to note that the 'HSA Boost' interest option is not FDIC-insured, and investment values can fluctuate with market risk.

Question 6

Are there any hidden fees with Lively?

Accepted Answer

Lively is generally transparent. The main fees to watch are the $24 annual investment fee for balances under $3,000 and the $2.95 per employee monthly fee for employer plans. There are no fees for account opening, closing, transfers, or debit card issuance. Always review your account statements for any transaction-specific charges, though these are rare.

Question 7

Does Lively charge a fee for transferring money out to another HSA provider?

Accepted Answer

No, Lively does not charge a fee for outgoing transfers or rollovers to another HSA provider. This is a significant benefit if you decide to consolidate accounts or move to a different provider later. However, the receiving institution may have its own acceptance fees, so check with them first.

Question 8

What is the fee for getting a debit card?

Accepted Answer

Lively provides up to 3 debit cards for free, with no issuance or annual fees. This allows you, your spouse, and dependents to pay for eligible medical expenses directly from the HSA at point of sale, simplifying record-keeping compared to paying out-of-pocket and reimbursing yourself later.

Question 9

How does the $24 annual investment fee work?

Accepted Answer

This fee is charged if your total Lively HSA balance (cash plus investments) is below $3,000 at the time the fee is assessed. It is an annual fee for the investing feature. If your balance is $3,000 or more, the fee is waived entirely. This is a change from prior years when there was no minimum balance requirement.

Question 10

Can I avoid all monthly fees with Lively?

Accepted Answer

Yes, if you open an individual account directly (not through an employer), you will pay $0 in monthly maintenance fees. The only potential fee is the $24 annual investment fee if you invest with a balance under $3,000. Employer-sponsored accounts incur the $2.95 per employee monthly fee, which your company may choose to pay for you.

Question 11

What investment options does Lively offer?

Accepted Answer

Lively provides access to a Schwab brokerage account where you can invest in a wide selection of ETFs, mutual funds, stocks, and bonds. There is no specific list of 'approved' funds; you have the full brokerage platform to choose from. This allows for a self-directed investment strategy tailored to your risk tolerance and goals for healthcare or retirement savings.

Question 12

How do I choose between the standard FDIC interest and the HSA Boost?

Accepted Answer

You must manually select the 'HSA Boost' option within your Lively account settings. The standard FDIC option is the default. Boost offers higher interest rates but is not FDIC-insured, meaning your principal is not government-guaranteed against institutional failure. For maximum safety on cash you need soon, stick with FDIC. For slightly higher returns on longer-term cash holdings, consider Boost.

Question 13

Can I use my Lively HSA to pay bills online?

Accepted Answer

Yes, Lively offers online bill pay functionality. You can set up payments to healthcare providers directly from your HSA cash balance. This is a useful feature for planned expenses like monthly insurance premiums (if you are on COBRA or Medicare) or large medical bills, helping you manage cash flow without using a debit card.

Question 14

How many debit cards can I get and are there limits?

Accepted Answer

You can request up to 3 free debit cards linked to your Lively HSA. These cards have standard daily purchase and ATM withdrawal limits set by the card issuer. It is wise to use them only for qualified medical expenses to maintain clear IRS records. You can manage and turn cards on or off through your online account for security.

Question 15

Is there a mobile app for Lively HSA?

Accepted Answer

Yes, Lively offers a mobile app for both iOS and Android. The app allows you to check balances, view transactions, submit receipts for reimbursement, transfer funds, and manage your investment account. It also provides mobile deposit for checks, making it a comprehensive tool for managing your HSA on the go.

Question 16

What are the 2026 contribution limits for a Lively HSA?

Accepted Answer

For 2026, the IRS limits are $4,400 for individual HDHP coverage and $8,750 for family coverage. If you are 55 or older, you can contribute an additional $1,000 as a catch-up contribution. These limits apply to the sum of all contributions from you and your employer to your Lively HSA. Exceeding these limits results in a 6% IRS excise tax.

Question 17

Does Lively provide the tax forms I need?

Accepted Answer

Yes, Lively provides all necessary IRS tax forms. You will receive Form 1099-SA if you take distributions and Form 5498-SA reporting your annual contributions. These forms are typically available by late January and can be downloaded from your online account. You use them to report HSA activity on your personal tax return (Form 8889).

Question 18

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

Accepted Answer

If you use HSA funds for anything other than qualified medical expenses before age 65, the distribution becomes taxable income and is subject to a 20% penalty. Lively does not police your purchases; it is your responsibility to ensure eligibility. Keep all receipts and records in case of an IRS audit. After 65, non-medical withdrawals are only taxed as income, with no penalty.

Question 19

Can I contribute to a Lively HSA if I have an FSA?

Accepted Answer

Generally, you cannot contribute to an HSA if you have a general-purpose Flexible Spending Account (FSA). However, you may be eligible if you have a 'limited-purpose' FSA that only covers dental, vision, or post-deductible expenses. You must confirm your FSA type with your employer. Having both a general FSA and an HSA violates IRS eligibility rules for the HSA.

Question 20

What are the HDHP requirements to be eligible for a Lively HSA in 2026?

Accepted Answer

To contribute to any HSA, including Lively, you must be enrolled in an IRS-qualified High Deductible Health Plan (HDHP). For 2026, the minimum deductible is $1,700 for individual coverage or $3,400 for family coverage. The maximum out-of-pocket limit is $8,500 for individuals or $17,000 for families. Your specific health insurance plan must meet these thresholds.

lively hsa bank: Your Questions Answered

Fees and Costs

Account Features and Management

Rules, Limits, and Compliance

Summary

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Quick Answers

What are the monthly fees for a Lively HSA in 2026?

How does Lively's investment feature work and what are the fees?

What are the cash interest rates for a Lively HSA?

How does Lively compare to Fidelity for an HSA?

Is my money safe with Lively HSA Bank?

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