Why is there a $0.01 contribution from Lively in my account?
Lively has contributed a penny into your account to ensure it is “established” as soon as your account is open and active. This ensures that you will be able to use your HSA funds for expenses incurred later, even if your account did not yet have money in it at the time the expense was incurred.
This is a small step with big consequences. The definition of “establishing” an HSA varies from state to state, resulting in confusion and many people missing out on potential reimbursements for eligible expenses simply because their account was not “established” sooner.
By contributing a penny to your account, also known as “penny funding,” Lively is ensuring your account meets all federal requirements so you will be able to maximize the benefits of your HSA. You can read more about this topic here.
Why was my contribution reduced by $0.01?
Lively proactively funds each account with a penny as soon as the accounts are open and active, to ensure that the account is considered “established” according to federal requirements. If you contributed the maximum amount for this year at the time of sign up, we have reduced the contribution by $0.01 to ensure you do not go over the annual limit. You can read more about this topic here.