Where can you open an HSA (health savings account)?

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Knowing where to open an HSA or health savings account can be confusing. Most people are offered an HSA by their employer, and your employer simply opens the account for you as part of your benefits (just like a 401k).

However, if you are self-employed OR leaving your employer and have an old HSA, you will need to open your own HSA account with an HSA provider. You can then fund your HSA or transfer your HSA from your old employer.

How to set up an HSA

To set up an HSA, all you need to do is open an account with an HSA provider. You can find a list of the best HSA providers here.

Opening an HSA account is pretty easy: you sign up, enter your name, Social Security number, and address, and you've got an account.

You can then fund your HSA account. If you want to transfer an old HSA from a previous employer, you can do so online or by contacting customer service at your new provider. They can help you with this – but all you really need is your old account information. It will take approximately 2-4 weeks for everything to transfer to your new account.

If you fund your own HSA because you are self-employed AND have qualified health insurance, you can contribute based on the HSA contribution limits. Here are the limits this year:

HSA benefits

HSAs offer many benefits. They are known to be “triple tax free” when used correctly. That means:

1. You contribute pre-tax money to your HSA
2. The money in your account grows tax-free
3. If you withdraw your HSA money for qualified expenses, it is also tax-free

Additionally, unlike other accounts, your HSA is an investment account. This means you can achieve much higher growth with your HSA funds than you would with a savings account.

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

People ask too

Can I open an HSA with my bank?

No, most banks do not offer a health savings account. You must open an HSA with an HSA provider.

What is the best HSA account?

The best HSA account is the one that has no monthly fees and offers many investment options. Fidelity and Lively are consistently ranked as the best HSA account.

Can you open an HSA online?

Yes, you can open an HSA account online with most providers.