Lively HSA No Monthly Fee Official Tips (2026) | HSA Tracker

An HSA is only available if your health plan is a qualified High Deductible Health Plan (HDHP). For 2026, the IRS sets minimum deductibles of $1,700 for self-only and $3,400 for family coverage.

The 2026 HSA contribution limit for family HDHP coverage is $8,750, significantly higher than the $4,400 self-only limit. If your health insurance covers at least one other family member, you are eligible for the higher family limit, even if your

Individuals aged 55 or older can contribute an extra $1,000 to their HSA as a catch-up contribution. This is in addition to the standard limit. Set a calendar reminder for your 55th birthday to increase your Lively contribution settings by $1,000

Contributions made to your HSA through an employer's payroll deduction are not subject to FICA taxes (Social Security and Medicare), saving you an extra 7.65%.

Any money your employer puts into your HSA counts toward your annual contribution limit. You are responsible for ensuring the total of your contributions plus employer contributions does not exceed the IRS limit.

A Health FSA is 'use-it-or-lose-it' with limited rollover, while an HSA has no expiration and is yours forever. You cannot have a general-purpose Healthcare FSA and contribute to an HSA in the same year.

Once your HSA cash balance exceeds your annual deductible or a comfortable emergency threshold, consider investing the excess for long-term growth. Lively offers two investment paths: a Schwab HSA or a Guided Portfolio.

Lively's Schwab HSA investment access has two fee models. Option A: Pay a $24 annual fee to invest any amount. Option B: Keep a $3,000 minimum in your Lively cash account, and invest only amounts above that with no Lively fee.

Lively's HSA Guided Portfolio charges a 0.50% annual management fee on your invested assets. On a $10,000 investment, that's $50 per year. Compare this to the $24 flat fee for the self-directed Schwab option, especially as your balance grows.

One of the most powerful HSA strategies is to pay for qualified medical expenses with after-tax dollars now, save your receipts, and let the HSA funds grow tax-free for decades.

The IRS provides a list of qualified medical expenses. Common eligible items include deductibles, copays, dental and vision care, prescription medications, mental health services, and many over-the-counter products (with a prescription for some).

The IRS may ask you to prove that HSA withdrawals were for qualified expenses. Maintain a digital filing system with receipts, explanation of benefits (EOBs) from insurance, and a log linking each expense to a withdrawal from your Lively account.

Dental and vision expenses are always HSA-eligible. If you have a limited-purpose FSA at work that only covers these areas, you can use both accounts: the FSA first, then the HSA. This maximizes your tax-free spending power.

After age 65, you can withdraw from your HSA for any reason without penalty, paying only income tax on non-medical withdrawals (making it function like a traditional IRA). For medical withdrawals, it remains tax-free.

You cannot use HSA funds to pay for expenses incurred before your HSA was established. The account must be open before the medical service date. Open your Lively HSA as soon as your HDHP coverage begins to start the eligibility clock.

If both spouses have HSA-eligible HDHP coverage, the combined family contribution limit is still $8,750 for 2026, not double. You can split this limit between your two HSAs in any way you choose, as long as the total does not exceed the family

Just like a 401(k), your HSA investments should be reviewed for proper asset allocation and risk tolerance. Log into your Lively investment portal at least once a year to rebalance if needed, especially if you are using the self-directed Schwab

Since the CARES Act, many over-the-counter medications and products are HSA-eligible without a prescription. This includes pain relievers, allergy medicine, bandages, and menstrual care products.

If you switch from a non-HDHP to an HDHP mid-year, you can contribute to your HSA for the months you were eligible. Your contribution limit is prorated by the number of months you had HDHP coverage on the first day of the month.

After age 65, HSA funds can be used tax-free to pay for Medicare Part B, Part D, and Medicare Advantage plan premiums. They cannot be used to pay for Medigap premiums. This is a significant use of tax-advantaged funds in retirement.