What is Required to Set Up an HSA in 2018?

Health Savings Accounts (HSAs) offer a tax-advantageous way to save and pay for healthcare expenses. Setting up an HSA is a straightforward process that requires meeting certain eligibility criteria and completing a few steps.

To establish an HSA in 2018, here are the key requirements:

1. Eligibility:
• Being covered by a High Deductible Health Plan (HDHP)
• Not being claimed as a dependent on someone else's tax return
• Not having other disqualifying health coverage (such as Medicare)
• Having no other general-purpose flexible spending account (FSA)
2. Enrollment:
• Enroll in an HDHP that meets HSA eligibility requirements
• Verify that your chosen HDHP qualifies for an HSA
3. Set Up:
• Open an HSA account with a qualified financial institution
• Complete the HSA enrollment forms provided by the institution
• Designate yourself as the account holder

Once these requirements are met, you can start using your HSA to save for and pay for qualified medical expenses.




Health Savings Accounts (HSAs) not only offer a tax-advantageous way to save for medical expenses but also empower individuals to take charge of their healthcare finances. To successfully set up an HSA in 2018, it’s essential to first ensure that you are eligible and then follow a few straightforward steps.

Here's an updated list of what you need to qualify for an HSA:

1. Eligibility:
• You must be enrolled in a High Deductible Health Plan (HDHP) that meets IRS requirements.
• You cannot be claimed as a dependent on another person’s tax return.
• Your health coverage should not include disqualifying options like Medicare.
• You should not possess any other general-purpose flexible spending accounts (FSAs) that could disqualify you.
2. Enrollment:
• Make sure to enroll in an HDHP that satisfies HSA eligibility requirements.
• Double-check that your HDHP is HSA-qualified by reviewing your plan documents.
3. Account Setup:
• Open your HSA account at a bank, credit union, or other financial institution that offers HSAs.
• Complete the necessary enrollment forms provided by your chosen institution.
• Designate yourself as the sole account holder to maintain control over your funds.

Meeting these qualifications lets you effectively use your HSA to save for any qualified medical expenses, helping you manage healthcare costs worry-free.