Eligible accounts and registrations

Overview

Using Bill Pay is easy and free. Enrolling eligible accounts is the first step to set up Bill Pay. Once you enroll your eligible account, just enter the information about the companies and individuals you want to pay, sometimes referred to as payees. Once your payees have been set up, you can make payments by entering the payment amount and the deliver by date. Bill Pay then sends either an electronic or paper check payment on your behalf.

Eligible accounts for Bill Pay

The three account types you can enroll Bill Pay in are Brokerage and Cash Management Accounts, Health Savings Account (HSA) and 529 College Savings Accounts.

Brokerage and Cash Management Accounts. Bill Pay for Brokerage and Cash Management Accounts is an online service that allows you to receive and pay eBills (electronic bills) from participating billers, pay one-time and automatic bills, review payment history, and set up bill reminders with just a few clicks.

• This online service is free for all Fidelity customers.
• To establish Bill Pay, log in to Fidelity.com and select Bill Pay in the Accounts & Trade menu.

Health Savings Account (HSA). Bill Pay for a Health Savings Account is an online service that allows you to receive and pay eBills (electronic bills) for qualified medical expenses from participating billers, such as doctors and hospitals.

• This online service is free for all Fidelity customers. There is no minimum balance required in your Health Savings Account to activate the service.
• To establish Bill Pay for a Health Savings Account, you must have a Fidelity Health Savings Account. You can then log in to Fidelity.com and select Bill Pay in the Accounts & Trade menu.
• What is a qualified medical expense?
  Qualified medical expenses as defined by the Internal Revenue Code as those that generally cover most medical care and services, dental and vision care, prescription drugs, and insulin that are not otherwise covered by insurance. For more details on what constitutes a qualified medical expense, please refer to IRS Publication 969 and 502 or consult a tax professional.
• Who is responsible for determining whether an expense is a qualified medical expense?
  As an HSA account owner, you must determine whether a particular medical expense is considered qualified and must keep all receipts and records to show that distributions have been made exclusively for qualified medical expenses and are, therefore, excludable from your gross income.

529 College Savings Account. Bill Pay for a 529 account is an online service that allows you to make single and recurring payments to colleges, tuition payment services, the account owner, or the beneficiary.

Money from a 529 account can be used, without penalty, for qualified higher education expenses, such as tuition, books, room and board, etc.

• Distributions for non-qualified expenses may incur federal income tax and a 10% federal penalty tax. Fidelity recommends that you retain records of payments for qualified higher education expenses in order to prepare your income tax returns.
• Payments made to recipients other than the account beneficiary, college, or university, or tuition payment service will be reported as such on Form 1099-Q for tax reporting purposes.
• Additional documentation (college invoice, statement, receipts) may be required by the IRS to verify that such payments are qualified.

To facilitate bill payments to colleges, please include the following information when setting up the payee:

• Enter the account number from your tuition invoice in the account number field.
• Correct payment address, including any specific area or department name required by the school.

The total market value is based on the prior business day’s market value of the assets in your 529 account. This market value may fluctuate between the time you enter your bill payment request and when the amount is deducted from your account. If the payment request is not available due to a decrease in market value, you will be notified that your transaction was not accepted, and you will need to resubmit your request. If you need to withdraw your entire account balance, please call a representative at 800-544-1914.

• Note: Payments will be deducted from your account on the withdrawal date.

For 529 accounts invested in multiple portfolios, the amount requested through Bill Pay for 529 accounts will be withdrawn from each portfolio held in your designated 529 account on a pro-rata basis. If you prefer to provide direction on the specific portfolio from which to deduct the requested amount, please call a representative at 800-544-1914.