Question 1

Is Lively HSA really free for individuals?

Accepted Answer

Yes, for individuals managing their own HSA, Lively's official pricing lists $0 monthly admin fee, $0 account opening fee, $0 account closing fee, $0 transfer fee, and $0 debit card fee for up to three cards. This makes the basic cash account genuinely free. The only potential recurring cost is a $24 annual fee for access to the Schwab self-directed brokerage if you invest and your cash balance is under $3,000.

Question 2

What fees do employers pay for a Lively HSA?

Accepted Answer

While individual employee accounts are free, employers sponsoring a Lively HSA pay $2.95 per enrolled employee per month (PEPM). Lively also sets a $200 monthly minimum for employer plans. This fee covers the administrative platform, integration, and support. Employees do not see any portion of this charge deducted from their personal HSA balance.

Question 3

How does Lively's $24 annual investment fee work?

Accepted Answer

If you choose to invest your HSA funds through Lively's linked Schwab brokerage account, a $24 annual access fee applies. However, Lively waives this fee if you maintain a cash balance of $3,000 or more in your HSA. This is different from providers that charge monthly management fees on invested assets. It's a flat annual cost, so it's especially important for those with smaller account balances to factor in.

Question 4

How do Lively's no monthly fees compare to Fidelity or HSA Bank?

Accepted Answer

Lively and Fidelity both offer $0 monthly maintenance fees for individual accounts, making them top choices for fee-conscious savers. In contrast, providers like HSA Bank often charge around $2.50 per month, which can be waived with a minimum balance, typically $3,000. HealthEquity has similar waivers, often at a $2,500 threshold. Lively's structure is simpler for individuals who want a straightforward, free cash account.

Question 5

Can I be charged a fee if my Lively HSA balance is low?

Accepted Answer

No, Lively does not charge a low-balance or minimum balance fee for its standard HSA. The only fee tied to your balance is the $24 annual investment access fee, which is waived if your cash balance is $3,000 or more. Your account will not incur charges simply for having a small or zero balance, which is a relief for those starting out or using funds for medical expenses.

Question 6

What are the 2026 HSA contribution limits according to Lively?

Accepted Answer

Lively's materials cite the 2026 HSA contribution limits as $4,400 for individuals with self-only HDHP coverage and $8,750 for those with family coverage. The catch-up contribution for account holders aged 55 and older remains $1,000. These figures align with IRS guidelines and are increases from the 2025 limits of $4,300 and $8,550.

Question 7

If Lively is free, how do they make money?

Accepted Answer

Lively generates revenue primarily from the monthly fees paid by employers ($2.95 PEPM) for sponsoring the plan. They may also earn interest on the cash balances held in HSA accounts, which is a common practice across the banking industry. Their business model focuses on serving employer groups while providing a cost-free experience to the individual account holder.

Question 8

Are there any hidden fees with a Lively HSA?

Accepted Answer

Lively states there are no hidden fees for individual accounts. All potential charges are disclosed upfront: the $24 annual investment fee and employer PEPM fees. There are no charges for account setup, closure, transfers, or debit card issuance for up to three cards. Always review their current fee schedule, as policies can change.

Question 9

Does Lively charge for paper statements or checks?

Accepted Answer

Lively encourages electronic statements and online transactions. While their primary materials highlight no monthly fees, they may charge for premium services like paper statement delivery or expedited check delivery. For most users who operate digitally, these potential charges are easily avoidable.

Question 10

Is the $24 investment fee charged per account or per investment?

Accepted Answer

The $24 annual Schwab brokerage access fee is charged per HSA account, not per investment fund or transaction. Whether you invest in one mutual fund or ten within your brokerage account, the annual fee remains a flat $24, waived if your HSA cash balance meets the $3,000 threshold.

Question 11

What happens to fees if I leave my employer who sponsors Lively?

Accepted Answer

If you leave your employer, your Lively HSA remains your personal account. The employer's $2.95 PEPM fee stops applying to you, and your account converts to a free individual HSA. Your fee structure reverts to the standard individual terms: $0 monthly fees, with only the potential $24 annual investment fee based on your cash balance.

Question 12

Are there transaction fees for buying or selling investments?

Accepted Answer

Lively partners with TD Ameritrade/Schwab for its self-directed brokerage. Therefore, standard brokerage transaction fees apply as set by Schwab. These are not Lively fees. Many ETFs and mutual funds are available commission-free, but you should check Schwab's current commission schedule for specific trades.

Question 13

How easy is it to contribute money to a Lively HSA?

Accepted Answer

Contributions can be made via employer payroll deduction (if sponsored), direct ACH transfer from a linked bank account, or mail-in check. Payroll contributions are optimal as they bypass FICA taxes for W-2 employees. The Lively dashboard provides clear instructions for setting up each method.

Question 14

Can I use my Lively HSA debit card for all eligible expenses?

Accepted Answer

Yes, you can use the Lively debit card for IRS-qualified medical expenses. Lively provides expense tracking tools and categorizes transactions. It's wise to keep receipts, as the IRS may require verification. The card works anywhere Mastercard is accepted for eligible healthcare purchases.

Question 15

What investment options are available through Lively?

Accepted Answer

Through the Schwab brokerage window, you have access to a full suite of investment options, including Schwab mutual funds, ETFs, stocks, and bonds. Lively itself does not curate a specific fund menu; you have the full self-directed brokerage experience, which requires more investor knowledge but offers greater choice.

Question 16

How does Lively help with tracking eligible expenses?

Accepted Answer

Lively's platform includes digital receipt capture and expense categorization tools. You can upload receipts directly to transactions, tag them, and generate reports for tax time. This is a key feature for reducing the fear of IRS audits, as it helps maintain organized records of HSA spending.

Question 17

What is Lively's customer support like?

Accepted Answer

Lively offers customer support primarily via email and phone during business hours. User reviews often praise their responsive and helpful support team. They do not have physical branch locations, so all support is remote, which is standard for modern, digital-first HSA providers.

Question 18

Who is the ideal user for a Lively HSA?

Accepted Answer

The ideal user is a cost-conscious individual who wants a simple, free HSA for cash savings and occasional investments. It's excellent for those without employer sponsorship, HR managers seeking a modern platform, and families who want to avoid fees eating into their healthcare savings. Active investors may prefer platforms with integrated, fee-free investment menus.

Question 19

How does Lively compare to Fidelity's HSA?

Accepted Answer

Both offer $0 monthly fees for individuals. Fidelity often wins for active investors due to its fully integrated, fee-free investment platform with no account minimums and a large fund selection. Lively's strength is its user-friendly interface and expense tracking tools, though its $24 investment fee for smaller balances is a disadvantage compared to Fidelity's no-fee investing.

Question 20

Is Lively a good option for investing HSA funds for retirement?

Accepted Answer

It can be, especially once your cash balance exceeds $3,000 to waive the annual fee. The access to Schwab's full brokerage allows for robust long-term investment strategies. However, the extra step of managing a separate brokerage and the potential fee for smaller balances make it slightly less seamless than providers like Fidelity for pure investment growth focus.

Question 21

Should I transfer an old HSA to Lively?

Accepted Answer

If your old HSA charges monthly or annual fees, transferring to Lively's free structure can save money. Lively charges $0 for inbound transfers. Before transferring, check if your current provider charges an outgoing closure or transfer fee. Also, consider if you value Lively's digital tools over your current provider's features.

Question 22

Can I have both a Lively HSA and an FSA?

Accepted Answer

You can have both, but with major restrictions. You cannot contribute to an HSA and a general-purpose FSA in the same year. You can have a Limited-Purpose FSA (for dental/vision) or a Dependent Care FSA alongside an HSA. This is an IRS rule, not a Lively-specific policy, but it's a common point of confusion Lively's resources can help clarify.

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