How to Open an HSA

In tough times, people often look at their budgets to see if they can cut expenses and make better use of the money they have. Although it may be tempting if you've been healthy, don't drop your health insurance. Switch to a high-deductible health plan and an accompanying health savings account (HSA) for lower premiums and more tax savings. Opening an HSA is simple, and can save you hundreds on your taxes each year.

Things You'll Need

• Proof of insurance
• Identification

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Instructions

Individual HSA

• 1

  Check that your current health insurance is the type (high-deductible health plan, or HDHP) that allows you to use an HSA.

• 2

  Call the bank you use for your everyday banking needs to see whether they offer an HSA. If so, consider opening your account there to keep all your banking in one place. Otherwise, search online for a bank, insurance company, or other HSA trustee that offers a plan with no monthly or annual fees and good investment options.

• 3

  Bring in (to a brick-and mortar bank) or send in (to an online bank) copies of your identification and proof of insurance. Fill out the forms to open the account, and bring cash or a check for an initial deposit.

Employer-Sponsored HSA

• 4

  Choose a high-deductible health plan that is eligible for an HSA during your next open enrollment period.

• 5

  Talk to the person in charge of benefits in your company's Human Resources department to determine when you can open your HSA. (You may only be able to open an account during the annual open enrollment period.) Your company contracts with an HSA trustee to manage all the employers' accounts, so you do not need to shop around.

• 6

  Fill out the necessary forms and decide on an amount to be deducted from your paycheck that will fund your HSA. This may be instead of, or in addition to, funds contributed by your employer.