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Can I Open a Health Savings Account On My Own?

Lively · June 19, 2018 · 3 min read

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Opening an HSA unlocks triple-tax savings. From there, you can save, spend or invest your HSA, as it fits your lifestyle and needs. No matter if you are an individual, family, self-employed or company owner, you can open an HSA. We will show you the requirements to open an HSA.

Individual HSA

Any individual with a qualifying High Deductible Health Plan can open an HSA account and contribute either to the individual or family limit. HSA eligibility is not connected to your employment, but rather your health insurance plan.

HSA accounts are lifetime accounts that go with you from job to job. In 2019, individuals can contribute up to $3,500 and families can contribute up to $7,000. HSA contributions are not limited by income level or tax brackets.

HSA Contribution Requirements for Individuals or Families

  1. In 2018, HSA-eligible health insurance must have an annual minimum deductible of $1,350 for individuals and $2,700 for families.

  2. In 2018, the annual out-of-pocket maximum can’t be more than $6,750 for individuals and $13,300 for families.

These are the contribution requirements but are not tied to HSA spending or investing. HSA-eligibility is only tied to how much you can contribute into your HSA account. Once you have HSA funds in your account, you can use those funds for qualified out-of-pocket medical expenses or save for retirement, regardless of your HSA-eligibility status. So in other words, if you have HSA funds in your account and then switch to a different health insurance (a non-HDHP), you can still use your HSA funds towards your qualified medical expenses and yes, they are still tax-free!

Individual HSA Tips

  • Add $1 to your HSA on Day 1 – Penny fund your HSA so it is considered “established”. From there you can backdate any expenses to that date, even if you add the funds later. It’s a great HSA benefit!

  • Invest your HSA Funds – Save for tomorrow by investing your HSA funds. Under IRS regulations you can invest in a variety of investment options, including individual stocks, bonds, CDs, ETFs, or mutual funds.

  • Save for Retirement – Add flexibility and savings to a retirement plan and any existing retirement accounts like an IRA or 401(k), by adding an HSA. After 65 years of age, you can use an HSA just like a 401k or IRA for non-qualified medical expenses.

If you need help understanding how much money you can contribute to your HSA, we built a free HSA eligibility calculator. Individuals or families can open a health saving account to save tax-free dollars for medical expenses for today, tomorrow or years to come.

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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