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HSA Quick Start Guide

3 min read

30 sec brief

Interested in an HSA? Already have an HSA and need to transfer to a new provider? No matter how familiar you are with an HSA or just getting started, our HSA quick start guide will answer all of the questions you have. Understanding the IRS rules and regulations of the HSA will allow you to…

Interested in an HSA? Already have an HSA and need to transfer to a new provider? No matter how familiar you are with an HSA or just getting started, our HSA quick start guide will answer all of the questions you have. Understanding the IRS rules and regulations of the HSA will allow you to get closer to adding the benefits to your health and benefits experience. Invest time in reading this article, so you can Invest in your health®. Our HSA quick start guide will get you ready.

HSA Guide

Am I Eligible?

In order to be eligible and contribute to an HSA, you must have an HSA-qualified health plan, like an HDHP (high deductible health plan). HSA-eligible plans that qualify must have deductibles of $1,350 or more for an individual and $2,700 for a family in 2019 and $1,400 or more for an individual and $2,800 for a family in 2020. You can read more details here.

What are the Costs?

Lively is free for individuals and families. Yes, Free! You can see all pricing details here (scroll to the bottom and see only $0). HSA Investments through TD Ameritrade are also free and there is no account minimum to invest. You can invest from Day 1.

What are the Benefits of an HSA?

With an HSA you get tax-free money! Paying for healthcare costs with your HSA means that you are saving 25% off the retail cost with triple tax benefits (assumed combined state and federal income taxes of 25% or more). HSAs allow for tax-deductible contributions, tax-free interest and tax-free withdrawals (for medical expenses). Please be sure to consult with your tax professional.

Your HSA never expires! The flexibility of a health savings account (HSA) is multi-faceted. Unlike an FSA, there is no “use it or lose it” policy so you can add money today and use it for years to come. You own your HSA account and can take it with you if you leave your current employer and roll it over into a new account just like a 401k.

This is a just a taste of your HSA benefits, you can see the full list here.

How Much Can I Contribute to an HSA?

2019 HSA contributions are $3,500 for individuals and $7,000 for families. 2020 HSA contributions are $3,550 for individuals and $7,100 for families.

HSA catch-up contributions will remain at an additional $1,000 for qualifying individuals over the age of 55.

Who Can Contribute to an HSA?

Anyone! You, your family members, your employer. An HSA is regulated by maximum contribution not by who contributes.

When Can I Open and Enroll in an HSA?

You can open and enroll in an HSA as long as you are eligible. If you already have an HSA-eligible health plan (like an HDHP), you can open an HSA today! You don’t need to wait for next year’s open enrollment. An HSA is one of the few benefits you can add anytime.

What Do I need to Get Started?

Just some basic information like your name, email, DOB, health plan start date, and your bank account details. Lively is 100% paperless so it only takes 5 minutes to get enrolled. You can sign up for a Lively HSA here.

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.

About the author

Lively

We are HSA Experts! Lively is a Health Savings Account (HSA) platform for employers and individuals. A 401(k) for healthcare.

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