II. How Can An HSA Be Established?
Q-8. How does an eligible individual establish an HSA ?
A-8. Beginning January 1, 2004, any eligible individual
(as described in A-2) can
establish an HSA with a qualified HSA trustee or
custodian, in much the same way that individuals
establish IRAs or Archer MSAs with qualified IRA or
Archer MSA trustees or custodians. No permission or
authorization from the Internal Revenue Service (IRS) is
necessary to establish an HSA . An eligible individual
who is an employee may establish an HSA with or without
involvement of the employer.
Q-9. Who is a qualified HSA trustee or custodian?
A-9. 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 MSAs is automatically approved to be an HSA
trustee or custodian. Other persons may request approval
to be a trustee or custodian in accordance with the
procedures set forth in Treas.
Reg. § 1.408-2(e) (relating to IRA nonbank trustees).
For additional information
concerning nonbank trustees and custodians, see
Announcement 2003-54, 2003-40 I.R.B. 761.
Q-10. Does the HSA have to be opened at the same
institution that provides the HDHP?
A-10. 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 an HDHP.
[Back] [Next]
