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5 things you need to know about Health Savings Accounts

Lively · December 13, 2017 · 3 min read

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Need help understanding the health, savings and tax value of the HSA? HSAs aren’t new but are often misunderstood and their benefits are as long and as their health savings potential.

5 HSA Tips

Here are the 5 things you need to know to get started or to optimize your HSA.

  1. It’s Free – There are many existing and traditional HSA providers in the market, so this is not universally true. Lively’s HSA is 100% free for individuals and families. No hidden fees. No transfer costs. None! Healthcare can be hard, saving should be easy. Full pricing details here. (Spoiler Alert – Look for the word FREE in big, giant letters)

  2. It lasts for years to come. HSAs aren’t tied to plan contracts, renewals, or open enrollment. You can open an HSA anytime (as long as you are eligible) and it goes with you from job to job or provider to provider. Unlike an FSA, there is no annual “use it or lost it” provision. It’s your money to use when you need to most today or 20 years from now.

  3. It’s 100% Tax-Free – If you are at all familiar with HSAs you understand their triple-tax advantages: tax-free contributions, tax-free investments and tax-free deductions (when used for qualified out-of-pocket medical expenses. If you are new to HSAs, this provides a direct way to save money when healthcare costs continue to rise. To top that off, HSA Investments offer another way to save even more.

  4. How You Qualify – You must use an HSA-eligible high-deductible health plan (HDHP). Under 2019 federal regulations, HDHPs that qualify must have deductibles of $1,350 or more for an individual and $2,700 for a family. Additionally, the annual out-of-pocket maximum on the plans can’t be great than $6,750 for individuals or $13,300 for families and you have to pay for all expenses until you hit your deductible – no insurance cost share before that. If your employer does not offer an HSA as part of your high deductible health plan, you can sign up as an individual (or family) and contribute.

  5. Contribution Limits – 2019 HSA contributions are $3,500 for individuals and $7,000 for families. Individuals over 55 years of age, can add an additional $1,000 per year in catch up contributions.

These are the most obvious benefits of HSAs, but the benefits grow further when you consider the HSA as a retirement savings vehicle. The HSA provides a clear path to dedicated health savings. It’s time to consider healthcare and benefits over a 5-10 year period and not limit it to a yearly view.

Lively

Lively

Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial set up to providing dedicated, ongoing support and education for every step. So each HSA can reach its maximum potential with minimal headache.

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Benefits

2023 and 2024 HSA Maximum Contribution Limits

Lively · May 16, 2023 · 3 min read

On May 16, 2023 the Internal Revenue Service announced the HSA contribution limits for 2024. For 2024 HSA-eligible account holders are allowed to contribute: $4,150 for individual coverage and $8,300 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

comparing hsa versus fsa

Benefits

What is the Difference Between a Flexible Spending Account and a Health Savings Account?

Lauren Hargrave · February 9, 2024 · 12 min read

A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.

Benefits of HSA employer matching

Health Savings Accounts

Ways Health Savings Account Matching Benefits Employers

Lauren Hargrave · October 13, 2023 · 7 min read

Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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