An HSA is a personal savings account for healthcare expenses.
An HSA is not a healthcare plan, but rather, it is used in conjunction with a qualifying High Deductible Health Plan (“HDHP”) in the US. An HSA is owned by the plan participant (i.e. you) into which you and your employer can deposit money to use for qualified health expenses. The contributions are tax-free in the year they are made, they grow tax-free, and distributions made for qualified medical expenses are tax-free as well. Since these accounts are owned by you, the employee, your account balances automatically roll over from year-to-year and at age 65 they function as a retirement account. Here's what you need to know about a Lively HSA.
HSA eligibility requirements
You are eligible to contribute to an HSA if:
- You're enrolled in a High Deductible Health Plan (HDHP) and it’s your only insurance coverage.
- You're not enrolled in Medicare. No one else can claim you as a dependent on their tax return.
- You or their spouse doesn’t have or use a General Purpose FSA (Flexible Spending Account). You're allowed to have a Limited Purpose FSA for dental and vision, or a Dependent Care FSA.
- You're aged 18 years or older.
What’s an HDHP?
The IRS sets the annual deductible and out-of-pocket maximum for HDHPs each year. In 2025, a health insurance plan is considered an HDHP if:
- The annual deductible is at least $1,650 for individuals and $3,300 for families.
- The annual out-of-pocket maximum is no greater than $8,300 for individuals and $16,600 for families.
Why have an HSA?
- Triple tax advantages. Tax-deductible contributions which reduces your total taxable income, tax-free interest and investment gains, and tax-free withdrawals for qualified medical expenses.
- Ability to invest funds. You can invest your HSA savings for the long-term. Stocks, bonds, ETFs, mutual funds are all available through Lively.
- Stays with you for life. Unspent HSA funds roll over each year, building a nest egg for your future retirement just like a 401(k) or IRA. This is true even if you leave your employer or change your health plan.
HSA contribution limits
Each year the IRS sets contribution limits for HSAs, which are different whether you have an individual or a family plan.
Lively's dashboard helps you keep track of your contributions and makes sure you don't exceed the limit.
2025 contribution limits
- $4,300 for individuals
- $8,550 for families,
- Additional $1,000 catch-up contribution for those 55 and older
Lively's HSA Guide
This guide covers HSA basics including how you can use them effectively to save on healthcare, taxes, and for retirement.
Top HSA questions, answered
We compiled the top HSA questions, and in-depth answers, so you can use yourHSA with confidence.
