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Why to add $1 to your HSA on Day 1

Lively · August 30, 2019 · 4 min read


No one wants to worry about healthcare costs and out-of-pocket expenses all of the time, so most of us succumb to an out of sight, out of mind mentality. As such, once you sign up for your HSA, you leave it until you see that healthcare bill come in the mail. There is one more very important step you might have missed. We will show you how adding $1 or even $0.01 to your HSA, can make all of the difference.

HSA Day 1

You just opened your HSA. What should you do next? The most important and simple step you can take is to add a penny. We are in no way advocating that you shouldn’t consider making payroll contributions, if they are available to you, or using one-time contributions when financially feasible to save more for your future healthcare expenses, but if that route is not workable with your current income levels or situation, let us show you how to work the system to your advantage and make sure your HSA is available when you need it.

Establishing an HSA

The most important thing you can do (once you qualify to open an HSA) is to establish an HSA. “Establishing” means different things and unfortunately varies state by state. In some states, it’s as simple as opening up an account. See your tax professional for more information. In other states, it means you have to open the account and fund it with as little as $0.01. This is commonly referred to “penny funding” and meets all federal requirements for establishing an HSA. Here at Lively, we help you establish your HSA by providing the first cent into your account so you don’t have to worry about the qualifications of establishing an HSA.

The importance of establishing an HSA, is that you can use HSA funds for expenses incurred before your account actually had the money in it! That’s right, you can back-date it and reimburse yourself when you do have enough money in your account. Any costs (based on purchase date), post-HSA establish date are eligible. Establishing an HSA just adds more flexibility to your healthcare payment options. If you need more details on HSA eligibility, you can read about the high deductible healthcare plan qualifying details. This isn’t universal, but a Lively individual HSA is free, and you can sign up in minutes!

Open Now so You Can Save Tomorrow

Based on the IRS HSA guidelines, you can pay for qualified out-of-pocket medical expenses using your HSA, after they occur. This means you can make one-time contributions to pay for medical bills or expenses (prescriptions, etc). Why would you do this? To take advantage of the tax-free money. HSAs allow for tax-deductible contributions, tax-free interest/investment gains and tax-free withdrawals (for qualified medical expenses) which means you can use tax-free money from your HSA to pay for health expenses. For many, this means a 25% savings off the retail cost (assumed combined federal and state income taxes for individuals or families). Then use your HSA debit card to pay for those expenses or upload your receipts to get reimbursed. It’s that simple. Find ways to save money, with no additional cost to you. It can make a big financial difference.

There is a lot to take into consideration when reviewing short-term HSA contributions and long-term HSA features like investments to ensure you have access to money today and build a health nest egg for years to come. But while you review those options, with a qualified financial planner or tax expert, the most important step you can take and surely the easiest is to add one penny to your HSA. A Lively HSA is free for individuals, so you can always use the money you saved to fund your HSA on Day 1.



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.

piggy bank on pink background


2024 and 2025 HSA Maximum Contribution Limits

Lively · May 9, 2024 · 3 min read

On May 9, 2024 the Internal Revenue Service announced the HSA contribution limits for 2025. For 2025 HSA-eligible account holders are allowed to contribute: $4,300 for individual coverage and $8,500 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


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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