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What is the Cost of An HSA?

Lively · April 3, 2018 · 3 min read

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HSA fees vary widely. Some providers are free, some charge $30 just to close your account. One thing is common, legacy HSA providers and financial institutions nickel and dime their customers and often charge exorbitant fees.

The laundry list of possible HSA fees includes monthly maintenance, account opening, account closing, point of sale, minimum balance, transaction correction, excess-contribution, funds transfers, debit cards replacement, and investment fees, just to name a few.

Outlining and categorizing these costs can help you save money this year and ensure you have the most money in your HSA for years to come.

Average HSA Costs

So what does the average yearly HSA platform cost?  According to a recent Morningstar report, the average HSA provider charges $26/year. Over the life of the HSA, this can reach almost $1,000 in lost HSA money (assumes 25 years at 3% annual compounded growth). This is money that is being taken directly from your health savings.

HSA Account Fees

As to where these started is anyone’s guess, although they are very similar to standard monthly savings or checking account fees. They are the cost of having a basic savings HSA, for many individuals or families. If you have any employer-sponsored HSA, you might never see these, until you leave that company, and then you are hit with these new monthly costs. Be aware that these fees often occur regardless of contribution or account value. Typical account fees costs range from $2.50-$5.00/month.

Investments Fees

The most common investments fees are a set monthly cost to have an HSA investment account. On top of that, you can expect investment trading fees (both when you buy and sell an investment).

Monthly investment fees can vary by account balance. In fact, some HSA platforms restrict investment until an account minimum is met. Ask your prospective HSA provider about these fees so you can understand the costs of your HSA investments (or possible returns). Fees can vary from set monthly (or yearly costs) to a percentage of the investment account balance.

HSA Hidden Fees

Account and investment fees are easy to understand and plan for. More hidden fees like transfer fees or account closure fees occur less often but can steal money from your savings. Can you believe some HSA providers charge an account closure fee? If they provide poor services, you get hit with one last fee before you leave. Or a fee just to use your HSA debit card? It’s your money. You saved it. Why does it cost money to use your HSA?

Keep track of these fees, both transparent and hidden to better understand the true cost of your HSA. If you get frustrated or want to remove these fees from your HSA experience, consider Lively. We are free for individuals and families. This includes HSA investments. No hidden fees. No bogus account charges. HSAs can be that simple.

If you need more help with health account decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.

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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