Health Savings Accounts

Created for organizations that have at least 500 HSA participants
Health Savings Accounts

Find a new way to help your employees stay healthy with Fidelity’s health savings accounts (HSA). With an HSA, your employees can save tax deferred for current and future qualified health care expenses. At the end of the year, their balance stays invested and can help offset qualified health-related expenses in retirement.

Fidelity’s Health Savings Plans Can Help You:

The Fidelity HSA® provides an approach for helping employees manage their health care spending and savings decisions.

Help Control Costs

Curb your premium increases year over year by offering a benefit designed to create longer-term changes in health care consumption and expenses.

  • Get full administrative support, including recordkeeping and custodial services
  • Integrate easily into an existing platform, including all high-deductible health plans
  • Keep up-to-date with a convenient single data feed

Help Participants Prepare

Give employees the power to manage today's qualified medical expenses, as well as prepare for the out-of-pocket medical costs in retirement.

  • Provide flexibility and the choice of thousands of Fidelity and non-Fidelity funds
  • Give participants the right tools - complimentary research and guidance when they need it
  • Ensure around the clock account access with a single sign-on for employees

Guidance provided by Fidelity is educational in nature, is not individualized, and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions.

System availability and response times may be subject to market conditions.

Why an HSA Plan Now

A Benefit That's Right for These Times

Health savings account plans (HSA® plans) are becoming more prevalent every year. They can help employers reduce costs and help keep employees engaged with their benefits programs. And, at the same time, they help employees manage today's medical expenses, as well as prepare for the substantial out-of-pocket medical costs they'll face in retirement.

  • Offer a triple tax advantage – With a Fidelity HSA employees contributions are pretax, any growth is tax free, and withdrawals for qualified medical expenses are not taxable.1 See how this works.
  • Provide a true retirement asset - Money left in a health savings account stays invested—with the potential to grow—year after year. In effect, a well-funded HSA is a kind of "health care 401(k)."
  • Keep ahead of the trends - 11.4 million people were enrolled in HSA accounts by January 2011—up from 10 million in 2010 and more than 10 times the number in 20052.

1Contributions, investment earnings, and distributions for qualified medical expenses are free from federal income taxes. State taxation varies from state to state.

2AHIP Study, June 2011

A connection between retirement and health savings

Fidelity's research3 shows some interesting links between saving for retirement and saving for health care through an HSA.

  • HSA participants across all income levels defer more in their 401(k) plans than the average Defined contribution (DC) participant at the same income levels.
  • HSA participants have significantly higher average DC account balances than the average DC participant across all age and income levels.
  • DC participants who also have an HSA have saved more than twice as much in their DC plan as the average participant ($71,500 vs. $170,500).

3Fidelity Investments analysis of 50,000 Health Saving Accounts as of 12/31/2010 and 11 million DC participants accounts as of 3/31/2011

Fidelity HSA Features

Make Saving Simple

The Fidelity Health Savings Account (HSA) combines tax-advantaged saving, account management, investment flexibility, and guidance. Everything is available to you with a single data feed—and to your employees with a single sign-on.

  • Account features—debit card, checkwriting, electronic funds transfer, and bank wire
  • Online Fidelity BillPay®—an efficient, convenient way to make online payments for qualified medical expenses
  • Account management—online account opening, balance inquiry, transaction history, and beneficiary designation
  • Investment options—Fidelity core positions, plus thousands of investment options and free research
  • Reporting—integrated Fidelity Account® statements and aggregate employer and tax reporting (1099-SA and 5498-SA)

Take Advantage of Decision Support

Our guidance, assistance and resources can help you and your employees.

  • Fund EvaluatorSM—compares mutual funds by fund type, performance, and expense ratio; reviews top fund picks
  • Customized health plan modeling tool—compares your medical plan options and the long-term savings potential of an HSA

Advantages of a Fidelity HSA Plan

The Fidelity Health Savings Account (Fidelity HSA®) provides a unique tax-advantaged savings opportunity to help cover qualified medical expenses in retirement. Employees get access to a wide range of investment options with complimentary research.

Offer a Full Range of Investment Options

  • A wide range of more than 4,000 investments options to help employees fit individual objectives.
  • Provide access to free independent third-party research
  • Leverage a robust trading platform
  • Access to no-transaction-fee funds
  • Integrate with ease with seamless account aggregation and single sign-on
  • Feel confident knowing that all contributions go to FDIC-insured accounts

Other fees and expenses, including those which apply to a continued investment in the fund, are described in the fund's current prospectus.

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