4 comments

  1. Minoru says:

    I’m seeing a frequent comparison of Lively and Fidelity when it comes to HSA. They seem to have pretty similar features, but would you suggest one over the other? If so, why?

    • Aaron says:

      Thanks for the question, Minoru. Really, all HSA’s function similarly. According to Lively, “HSA’s are triple tax advantaged savings accounts that house funds that can either be invested or used for eligible medical expenses (or some combination of both).” That said, Lively boasts of doing one thing well and one thing only: HSAs. So, their interests aren’t divided. While Fidelity may offer a one “package” solution (where you don’t have a multiple accounts – if you were to invest w/ your Lively HSA through TD Ameritrade), they offer zero fees. Hope this helps.

  2. J says:

    Have you seen stand alone HSA’s for dental expenses or do you need to purchase dental insurance and then you are allowed to set up a HSA?

    • Aaron says:

      Good question Jo. Got this from others asking similar questions online – and sounds like you can use an HSA for dental expenses:

      The IRS will allow HSA payments for “diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.” As long as the expenses are not eligible for reimbursement through insurance or other sources.

      From IRS publication 502: ” Dental Treatment: You can include in medical expenses the amounts you pay for the prevention and alleviation of dental disease. Preventive treatment includes the services of a dental hygienist or dentist for such procedures as teeth cleaning, the application of sealants, and fluoride treatments to prevent tooth decay. Treatment to alleviate dental disease include services of a dentist for procedures such as X-rays, fillings, braces, extractions, dentures, and other dental ailments.”

      The general rule of thumb is so long as an expense is not cosmetic in nature but rather medically necessary, then the expense would be considered eligible. For example, a bone graft could be eligible if it is medically necessary whereas teeth whitening isn’t eligible because it is seen as a cosmetic improvement.

      Hope this helps.

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