Where To Open An HSA (Health Savings Account)?

[ad_1]

It can be confusing to know where to open an HSA or health savings account. For most people, you are offered an HSA through your employer, and your employer simply opens the account for you as part of your benefits (just like they do wth a 401k).

However, if you’re self-employed, OR if you’re leaving your employer and have an old HSA, you need to open your own HSA account at an HSA provider. You can then fund your HSA, or rollover your HSA from your old employer.

How To Setup An HSA

To setup an HSA, you simply need to open an account at an HSA provider. We have a list of the best HSA providers here.

Opening an HSA account is fairly straightforward – you sign up, enter your name and social security number, address, and you have an account.

You can then fund your HSA account. If you’re rolling over an old HSA from a past employer, you can do this online or contact customer service at your new provider. They can help walk you through – but you really just need your old account information. It will take about 2-4 weeks to get everything moved into your new account.

If you are funding your own HSA because you’re self employed AND have a qualifying health insurance plan, you can contribute based on the HSA contribution limits. Here’s the limits this year:

HSA Benefits

HSAs come with a lot of benefits. They are known for being “triple tax-free” when used correctly. What this means is:

You deposit money into your HSA before taxes
The money inside your account grows tax-free
If you withdrawal your HSA money for qualifying expenses, it’s tax-free as well

Plus, unlike other accounts, your HSA is an investment account. This means that you can invest your HSA funds to see much higher growth than you would with a savings account.

This makes an HSA one of the best account-types you can have.