Who Can Open an HSA?

• Health Savings accounts can be opened by qualifying individuals. Individuals must be a member of a high deductible health insurance plan (HDHP), sometimes referred to as a catastrophic health insurance plan, not be covered under Medicare or be claimed as a dependent for tax purposes.
  
  

Trustee

• The HSA functions as a trust. The trustee of the plan may be an insurance provider, a bank, or other approved trustee. The HSA trustee does not need to be associated with your health insurance provider.
  
  

Who Can Contribute?

• The individual who owns the HSA may contribute to the account. In addition, the individual's employer may also contribute. Only cash contributions are accepted for an HSA.
  
  

Contribution Limits

• The amount that an individual can contribute depends on the high deductible health insurance plan the individual carries. In 2010, the IRS allows contributions up to $3,050 if you have an individual plan and up to $6,150 if you have a family plan.
  
  

Benefits

• You receive a tax deduction for contributions to your HSA account. In addition, you can receive distributions for qualified medical expenses without paying tax on the distribution. Finally, the money in the account carries over each year until you use it.