Information necessary for opening a health savings account, or HSA, includes whether employees' health care policies qualify them for an HSA and how much money they can contribute annually, according to the Internal Revenue Service. Additionally, in choosing where to open the account, employees should consider the fees, minimum balances, convenience, access and security of the financial institution, advises Marcie Geffner for Bankrate. They should also know whether they have the option of investing the funds in the HSA.
To be eligible to open an HSA, individuals must be enrolled in a qualifying high-deductible health insurance plan, explains the IRS. As of 2015, the minimum deductibles are $1,300 for individuals or $2,600 for families. Maximum annual contribution limits are $3,350 for individuals and $6,650 for families. Individuals with eligible policies can open HSA accounts in any financial institutions that offer them, but in some situations, it may expedite the claims process to use the administrator preferred by the insurer or employer, notes Kimberly Lankford for Kiplinger.
An important factor in choosing an HSA administrator is the fees involved, as some financial institutions have charges for every transaction and for opening and maintaining the account, obtaining a debit card and transferring funds, states Geffner. Some HSA administrators waive certain fees if customers keep a minimum balance in the account. If HSA account holders want to invest their funds, they should find out the range of investment possibilities available to them.