Question 1

Is Lively HSA really free for individuals?

Accepted Answer

Yes, for the basic cash account, Lively HSA is free for individuals. Their official pricing states $0 monthly maintenance, $0 account opening, $0 account closing, and $0 funds transfer in or out fees. This makes it a strong option for anyone who wants a simple place to store HSA contributions for eligible medical expenses without any account fees eating into their balance.

Question 2

What does Lively charge employers?

Accepted Answer

While employee HSAs are free, employers pay to use Lively's platform. Their official employer guide lists a cost of $2.95 per employee per month with a $50 monthly minimum. Some employer plan materials may reference a $200 monthly minimum, so businesses should verify current terms directly with Lively. Employers do not pay for the HSA account itself, just the administration service.

Question 3

Are there any investing fees with Lively HSA?

Accepted Answer

Yes, investing introduces fees. Lively offers two primary investment paths. You can access a Schwab HSA Brokerage Account either by paying a $24 annual fee (with no minimum) or by only investing money above a $3,000 cash balance (with no Lively fee). Their HSA Guided Portfolio charges a 0.50% annual management fee on invested assets, billed quarterly. The core cash account remains fee-free.

Question 4

How do Lively's fees compare to Fidelity HSA?

Accepted Answer

Both Lively and Fidelity offer $0 monthly account fees for individuals. Fidelity typically has $0 investment trading fees for its own mutual funds and ETFs and no balance minimums. Lively's cash account is also free, but its investment options come with the fees described above. For someone focused purely on low-cost investing within their HSA, Fidelity might have an edge, while Lively's interface is often praised for user-friendliness.

Question 5

What are the 2026 HSA contribution limits?

Accepted Answer

For 2026, the IRS set HSA contribution limits at $4,400 for self-only HDHP coverage and $8,750 for family coverage. Individuals aged 55 or older can make an additional $1,000 catch-up contribution. These limits increased by $100 and $200 respectively from the 2025 limits of $4,300 and $8,550. Staying within these limits is vital to avoid IRS penalties.

Question 6

What are the 2026 HDHP requirements for HSA eligibility?

Accepted Answer

To contribute to any HSA, including a Lively HSA, you must be enrolled in a qualified High-Deductible Health Plan. For 2026, the HDHP minimum deductibles are $1,700 for individual coverage and $3,400 for family coverage. The maximum out-of-pocket expenses are $8,500 for individual coverage and $17,000 for family coverage. Your plan must meet these IRS criteria.

Question 7

Is there a fee to open or close a Lively HSA?

Accepted Answer

No. Lively's official pricing clearly states there is a $0 fee to open an account and a $0 fee to close an account. This removes a barrier for individuals who are testing an HDHP for the first time or who may need to switch providers later.

Question 8

Does Lively charge for transferring money into or out of the HSA?

Accepted Answer

Lively does not charge fees for transferring funds into the account (contributions) or for transferring funds out for qualified distributions. However, if you initiate a full account transfer to another HSA provider, the receiving institution may have a fee, and Lively does not charge to send the funds.

Question 9

What is the $24 annual Schwab access fee for investing?

Accepted Answer

This is one of two paths to invest with Lively. For a flat $24 per year, you can open a Schwab HSA Brokerage Account with no minimum cash balance requirement. All your funds, even small amounts, can be invested. The alternative path requires you to keep a $3,000 minimum in your Lively cash account before investing any excess.

Question 10

How is the 0.50% guided portfolio management fee charged?

Accepted Answer

The 0.50% annual fee for Lively's Guided Portfolio is calculated based on your total invested assets in that portfolio. It is billed quarterly, which means you pay 0.125% of your balance every three months. This fee is in addition to the expense ratios of the underlying ETFs in the portfolio.

Question 11

Can my employer cover the investing fees for me?

Accepted Answer

Possibly. Some employers negotiate benefits packages where they cover the $24 annual Schwab access fee or other administrative costs for their employees. You should check with your HR or benefits department to see if this is part of your company's specific Lively HSA offering.

Question 12

What is the last-month rule for HSA contributions?

Accepted Answer

The last-month rule is an IRS provision that allows you to contribute the full annual HSA limit for a tax year if you become eligible (enrolled in an HDHP) by December 1st of that year and remain eligible through the following full calendar year. This is a powerful tool for maximizing contributions if you switch to an HDHP late in the year.

Question 13

What happens if I contribute over the 2026 HSA limit?

Accepted Answer

Excess contributions are subject to a 6% IRS excise tax for each year they remain in the account. You must correct the excess by either withdrawing the extra funds (plus any earnings) before your tax filing deadline or applying the excess to the next year's contribution limit. Proper tracking is essential to avoid this penalty.

Question 14

Can I have both an HSA and a Flexible Spending Account?

Accepted Answer

Generally, no. You cannot contribute to a general-purpose Healthcare FSA and an HSA in the same year. However, you may be able to have a limited-purpose FSA (for dental and vision only) or a post-deductible FSA alongside your HSA. Check with your employer's benefits team to confirm what is allowed.

Question 15

Are HSA contributions pre-tax or post-tax?

Accepted Answer

It depends on how you contribute. Payroll deductions through an employer are made with pre-tax dollars, reducing your taxable income immediately. Contributions made directly from your bank account are post-tax, but you claim them as a deduction on your Form 1040, achieving the same tax outcome when you file.

Question 16

What is the catch-up contribution for people 55 and older?

Accepted Answer

Individuals aged 55 or older by the end of the tax year can contribute an extra $1,000 to their HSA above the standard limit. For 2026, that means a 55-year-old with self-only coverage can contribute up to $5,400 ($4,400 + $1,000). If both spouses are 55+, each can make their own $1,000 catch-up contribution to their own HSA.

Question 17

How do I pay for a medical bill with my Lively HSA?

Accepted Answer

Lively provides a debit card linked to your cash account. You can use it directly at the point of sale for qualified expenses. Alternatively, you can pay out-of-pocket, keep the receipt, and later reimburse yourself by transferring funds from your Lively HSA to your personal bank account. The Lively app makes tracking and submitting receipts straightforward.

Question 18

What is the difference between the cash account and the investment account?

Accepted Answer

Your Lively HSA has two parts: a cash account (like a savings account) and an investment account. The cash account holds your contributions until you spend them or move them to invest. It earns a small interest rate. The investment account (via Schwab or the Guided Portfolio) holds mutual funds or ETFs for potential long-term growth. Funds are not automatically invested.

Question 19

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

Accepted Answer

This depends on your healthcare needs and risk tolerance. A common strategy is to keep an amount equal to your annual insurance deductible in the cash account for immediate medical needs. Any funds beyond that can be invested for long-term growth, treating the HSA as a supplemental retirement account due to its triple tax advantage.

Question 20

Can I buy stocks individually with my Lively HSA?

Accepted Answer

If you use the Schwab HSA Brokerage Account option through Lively, you can buy individual stocks, ETFs, mutual funds, and other securities available through Schwab. The Guided Portfolio option does not allow for individual stock picking; it allocates your money into a managed mix of ETFs based on your selected risk profile.

Question 21

What happens to my Lively HSA if I change jobs or lose my HDHP?

Accepted Answer

Your Lively HSA is your account, so it stays with you. If you leave your job, you retain ownership and control. If you lose HDHP coverage (and do not qualify under another rule like COBRA), you can no longer make new contributions, but you can still use the existing funds for qualified expenses and manage your investments.

Question 22

How does Lively's free HSA compare to Fidelity's?

Accepted Answer

Both offer $0 monthly account fees. The key difference is in investing. Fidelity charges $0 for trading its own funds and has no account minimums. Lively's cash account is free, but its investment paths have fees: the $24 Schwab annual fee or the 0.50% guided portfolio fee. For active investors, Fidelity may offer lower overall costs.

Question 23

What are the main advantages of choosing Lively HSA?

Accepted Answer

Lively is known for an intuitive, user-friendly interface and mobile app that simplifies tracking expenses and uploading receipts. Their clear, upfront fee structure for the cash account is appealing. They also offer useful tools for employers and strong customer support. For individuals who prioritize ease of use over the absolute lowest investment fees, Lively is a top contender.

Question 24

What are potential drawbacks of Lively HSA?

Accepted Answer

The main drawbacks relate to investment costs. The $24 annual Schwab fee or the 0.50% managed portfolio fee can make long-term investing more expensive than with a provider like Fidelity. Additionally, the requirement to maintain a $3,000 cash minimum to avoid the $24 fee can be a barrier for new account holders who want to start investing with smaller amounts.

Question 25

Is Lively a good HSA for investment-focused users?

Accepted Answer

It can be, but it requires careful choice. The Schwab brokerage access provides a full range of investment options, which is excellent. However, the $24 annual fee is a cost that pure investment-focused providers like Fidelity do not charge. For a high-balance account, the 0.50% guided portfolio fee could become substantial compared to using low-cost index funds directly.

Question 26

Who is the ideal user for a Lively HSA no monthly fee official account?

Accepted Answer

The ideal user is a W2 employee or self-employed individual who wants a simple, fee-free place to store HSA contributions for near-term medical expenses. It's also great for those who value a superior user experience for tracking receipts and managing distributions. Individuals who plan to invest large sums may want to compare the long-term fee impact against other providers.

lively hsa no monthly fee official: Your Questions Answered

Lively HSA Fees and Pricing

HSA Eligibility and Contribution Rules

Using and Investing with Your Lively HSA

Comparing Lively to Other HSA Providers

Summary

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Quick Answers

Is Lively HSA really free for individuals?

What does Lively charge employers?

Are there any investing fees with Lively HSA?

How do Lively's fees compare to Fidelity HSA?

What are the 2026 HSA contribution limits?

What are the 2026 HDHP requirements for HSA eligibility?

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