What is an HSA?

An HSA or Health Savings Account is a bank account that you open at a financial institution in your name with your money. Like any other account money only comes out and goes in to the account per your instructions. In order to open and contribute to a Health Savings Account you have to meet the following eligibility requirements set by the IRS.

Eligibility to Make Contributions to HSA
In order to be eligible to make contributions to an HSA, an individual must meet the following requirements:

1. He or she must be covered under a high deductible health plan (HDHP defined below),
2. He or she cannot have any other health coverage except as permitted (see below),
3. He or she cannot be claimed as a dependent on another person’s tax return, and
4. He or she must be an eligible on the first day of the month to take an HSA deduction for…