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HSA Account Opening FAQ


What is an HDHP and why do I need one?

By IRS definition, a High-Deductible Health Plan (HDHP) provides no benefits until the deductible is met, with one exception for certain preventive care benefits. You must have an HDHP in order to qualify to open a Health Savings Account (HSA).


How many beneficiaries should I designate?

We recommend you designate at least one primary beneficiary who will inherit your account assets in the event of your death. Your HSA agents (the person you may authorize to transact business on your behalf)  DOES NOT inherit the account, only the person(s) listed as your beneficiary.


What is the difference between a primary and a contingent beneficiary?

A primary beneficiary receives account assets in the event of your death. A contingent beneficiary receives account assets only when all primary beneficiaries predecease you.


Under what circumstances will my contingent beneficiaries receive my HSA assets?

A contingent beneficiary receives account assets in the event of your death only when all primary beneficiaries predecease you.


What is a rollover?

A rollover is the movement of pre-existing health savings account (HSA) funds from one financial institution to another. Assets must be deposited within 60 days of receipt and are limited to one rollover transaction every twelve months.

What is a trustee transfer?

A trustee transfer is the movement of pre-existing HSA funds between financial institutions using a trustee transfer form. The form must be completed prior to the movement of funds. This type of transfer is a non-reportable transaction with no limit on frequency.


Which contribution tax year should I choose?

Current Year is a deposit made in the year for that tax year. Previous Year is a deposit made between January 1st and April 15th for the previous tax year.


What is an Individual Plan?

When one individual is covered by a High-Deductible Health Plan (HDHP), it is considered an Individual Plan. Annual contributions are subject to IRS limits based on the type of coverage.


What is a Family Plan?

A Family Plan consists of two or more individuals covered by the same High Deductible Health Plan (HDHP). Annual contributions are subject to IRS limits based on the type of coverage.