How to open an HSA at Fidelity

Fidelity lets you open an HSA in two ways: through your employer's plan if Fidelity is the custodian, or as an individual account if you have a high-deductible health plan (HDHP) and are not covered by another HSA. The employer route is faster—your HR department handles most of the paperwork and may set up payroll deductions. For an individual account, you go directly to Fidelity's website, provide proof of HDHP coverage, and fund it yourself.

The actual opening takes about 10 to 15 minutes online. You will need your Social Security number, date of birth, address, and employment status. If you are opening through an employer plan, check with your benefits team first to confirm Fidelity is your custodian and whether they have already sent you enrollment instructions. If you are opening individually, go to Fidelity's HSA page, select "Open an Account," and choose whether you want just the savings portion or a combination of savings and investment options.

Key Takeaways

  • Fidelity HSAs can be opened through your employer's plan or as an individual account if you have an HDHP and no other HSA coverage.
  • Employer plans usually require you to enroll during open enrollment or a may have access to life event, and your HR team will tell you the deadline.
  • Individual accounts open online in about 15 minutes and require proof that you have an HDHP—usually a screenshot or letter from your health plan.
  • You can choose a savings-only HSA or one that lets you invest contributions in mutual funds and stocks after you reach a minimum balance.
  • Contributions are deductible on your taxes, and Fidelity will send you a 1099-SA form at year-end if you withdraw money for non-medical expenses.

Opening an HSA through your employer

If your employer uses Fidelity as the HSA custodian, enrollment usually happens during open enrollment or when you first become may be able to access for your company's HDHP. Your HR or benefits department will send you a link to Fidelity's enrollment portal or a paper form. The enrollment window is typically 30 to 60 days, and missing it means waiting until the next open enrollment period unless you have a may have access to event (marriage, birth, loss of coverage, or a change in your employer's plan).

During enrollment, you will choose your contribution amount for the year. If you are paid biweekly, that amount is divided by 26 and deducted from each paycheck. You can change your contribution amount once per year during open enrollment, or immediately if you have a may have access to life event. After you enroll, Fidelity sends you login credentials and a debit card, usually within 5 to 10 business days. Your first contribution may take one to two pay periods to appear in the account.

Opening an individual HSA with Fidelity

Individual HSAs are for people who have an HDHP but are not enrolled in an employer plan, or whose employer does not offer an HSA. You open one directly through Fidelity without going through HR. Start at Fidelity.com/HSA, click "Open an Account," and select "Individual HSA." You will answer questions about your age, income, and HDHP coverage.

Fidelity will ask you to confirm that you have an HDHP and that you are not covered by any other HSA or health plan that would disqualify you. You can provide this proof in several ways: upload a screenshot of your health plan's summary of benefits and coverage (SBC), a letter from your insurer showing your deductible and out-of-pocket maximum, or a recent explanation of benefits (EOB). Once Fidelity verifies your HDHP status, your account opens immediately and you can fund it by bank transfer, check, or payroll deduction if your employer allows it.

What documents you will need

For any HSA opening at Fidelity, have these ready: your Social Security number, date of birth, current address, and employment status. If you are opening an individual account, you also need proof of HDHP coverage. This proof does not have to be official—a screenshot of your health plan's website showing your deductible and out-of-pocket maximum is usually enough. If you cannot find that, call your health insurance company and ask them to email you a summary of your plan's deductible and out-of-pocket limits.

For employer plans, your HR department will tell you what documents to bring to enrollment. Usually it is just your employee ID and confirmation that you are enrolled in the HDHP. If you are self-employed or have a spouse with an HDHP, Fidelity may ask for a copy of your health plan documents or a letter from your insurer confirming your coverage dates and deductible amount.

Funding your HSA and setting up contributions

Once your account is open, you can fund it in three ways: a one-time bank transfer, recurring monthly transfers, or payroll deduction. Payroll deduction is the most common for employer plans—your HR team sets this up during enrollment, and the money comes out before taxes, which lowers your taxable income. For individual accounts, you can set up automatic monthly transfers from your bank, or make a single contribution at tax time.

The annual contribution limit for 2024 is $4,150 for individual coverage and $8,300 for family coverage (these amounts change each year). If you are 55 or older, you can add an extra $1,000 per year. Contributions made by your employer count toward this limit, so if your company contributes $2,000 and you contribute $2,000, you have hit the limit. You can contribute at any time during the year, but contributions for a tax year must be made by April 15 of the following year to be deductible on that year's taxes.

Choosing between savings-only and investment options

Fidelity offers two types of HSAs: a savings account that earns a small amount of interest, and a brokerage account that lets you invest in mutual funds and stocks. The savings-only option is simpler and has no investment risk, but the interest rate is low—usually less than 1 percent. The brokerage option lets you grow your money faster, but you can only invest after your account reaches a minimum balance, typically $1,000 to $2,500 depending on the fund.

Most people keep money they plan to use within the next year in savings, and invest the rest. You can switch between savings and investments at any time, and you can hold both at once—some of your balance in savings and some in funds. When you open your account, Fidelity will ask which option you want. You can change this choice later by logging into your account and adjusting your settings.

After your account opens: next steps

Once your HSA is open, Fidelity will send you a debit card that you can use to pay for may be able to access medical expenses directly. You will also get online access to your account, where you can see your balance, make transfers, and download statements. Keep receipts for any medical expenses you pay with the HSA debit card—the IRS does not require you to submit them, but you need them if you are ever audited.

If you withdraw money for non-medical expenses before age 65, you owe income tax on the withdrawal plus a 20 percent penalty. After age 65, you can withdraw money for any reason without the penalty, though you still owe income tax on non-medical withdrawals. At the end of each year, Fidelity sends you a 1099-SA form showing how much you withdrew. If you had any non-medical withdrawals, you report them on your tax return.

Frequently Asked Questions

How long does it take to open a Fidelity HSA?

Individual accounts open immediately after you submit your information online. Employer plans depend on your company's enrollment schedule—usually 5 to 10 business days after you enroll. Your debit card arrives within 5 to 10 business days after your account opens, but you can start using your account online before the card arrives.

Can I open a Fidelity HSA if my employer does not offer one?

Yes. If you have an HDHP and are not covered by another HSA, you can open an individual account directly through Fidelity. You will need to show proof of your HDHP coverage, such as a screenshot of your plan's deductible and out-of-pocket maximum.

What if I miss my employer's HSA enrollment window?

You cannot enroll until the next open enrollment period, which is usually once per year. However, if you have a may have access to life event—marriage, birth, loss of coverage, or a change in your employer's plan—you can enroll outside the window. Contact your HR department to learn about your situation qualifies.

Can I invest my HSA money at Fidelity?

Yes, but only after your account reaches a minimum balance, usually $1,000 to $2,500. Once you hit that threshold, you can move money into mutual funds, stocks, or other investments. Money in savings earns interest but grows slowly; invested money can grow faster but carries market risk.

Do I have to use my HSA debit card for medical expenses?

No. You can pay for medical expenses out of pocket and reimburse yourself from your HSA later, or you can use the debit card at the point of sale. Some people prefer to reimburse themselves so they can let the HSA grow and use it as a retirement account after age 65.