Fidelity Investments is rolling out its health savings account to institutions by the end of the year. Will Applegate, product manager, said the firm had tested it among its own employees and had a 5% adoption rate, which was within expectations. The HSA will behave in much the same way as the 401(k) plans the firm sells, and be offered along with them. Fidelity is also exploring the concept of including lifecycle or other asset allocation funds. Asset allocation funds have not yet become popular in other firms' HSA offerings, and they offer an easy way to manage assets, Applegate said. Fidelity is already planning to offer employers HSA-oriented planning tools (DCSPA, 3/13). The HSA will be offered via Fidelity's brokerage platform rather than the retirement recordkeeping system. Applegate said when an employee changes jobs it becomes more like a retail account rather than a 401(k) and such accounts are more portable. The HSA is designed for a different purpose and the market is divided pretty evenly between those who spend and those who see it as a vehicle for future health costs, Applegate said, so the brokerage platform lent itself better to that.