ESTABLISH THE HSA?

1. How does an eligible individual establish the HSA?
An eligible individual can establish a HSA with a qualified HSA trustee or custodian, in much the same way that individuals establish an IRA. No permission or authorization from the Internal Revenue Service (IRS) is necessary to establish a HSA. An eligible individual who is an employee may establish a HSA with or without involvement of the employer.

2. Who is a qualified HSA trustee or custodian?
Any insurance company or a bank can be a HSA trustee or custodian. In addition, any other person already approved by the IRS to be a trustee or custodian of IRAs or Archer MSAs is automatically approved to be a HSA trustee or custodian.

3. Does the HSA have to be opened at the same institution that provides the HDHP?
No. The HSA can be established through a qualified trustee or custodian who is different from the HDHP provider. Where a trustee or custodian does not sponsor the HDHP, the trustee or custodian may require proof or certification that the account beneficiary is an eligible individual, including that the individual is covered by a health plan that meets all of the requirements of a HDHP.

4. When and how do I apply for a HSA? Does the employer or employee do it?
Before you can apply for a HSA you must have a qualified High Deductible Health Plan in force. Then, either the employer or employee can contact a HSA administrator to set-up a qualified Health Savings Account. Once the proper application and eligibility forms are processed, the administrator will establish the account. Then a customer Welcome Kit with account number and important account details will be provided.