Establish an HSA Help

Any eligible individual can establish an HSA with a qualified HSA trustee or custodian. An eligible individual who is an employee may establish an HSA with or without involvement of the employer.

 

Beneficiaries: Although naming beneficiaries is not required, an HSA owner should name a beneficiary(ies) to receive the HSA assets upon his death. HSA owners also may wish to change their death beneficiaries.

 

Any insurance company or any bank (including a similar financial institution as defined in section 408(n)) can be an HSA trustee or custodian. In addition, any other person already approved by the IRS to be a trustee or custodian of IRAs or Archer medical savings accounts (MSAs) is automatically approved to be an HSA trustee or custodian.

 

Persons other than banks, insurance companies, or previously approved IRA or MSA trustees or custodians may request approval to be a trustee or custodian in accordance with the procedures set forth in Treasury Regulation Section 1.408-2(e) (relating to nonbank trustees).

 

Although proof is not required, a trustee or custodian may ask for proof or certification that a potential HSA owner is eligible to establish an HSA. For example, the trustee or custodian may request documentation that verifies that the individual is covered by a health plan that meets all of the requirements of an HDHP.