Many of you have been covered under a 'high deductible' insurance plan for some time, while others are just getting started. We've met people (in both situations) who haven't yet opened their HSA account.

Once you're enrolled in a qualifying health plan, the next step is to contact a trustee (custodian) and open an HSA account. It's important to open your account ASAP because expenses are not deductible if they're incured PRIOR to the date the HSA account is opened. It doesn't matter that there was a qualified health insurance plan in force at the time.

An HSA trustee is simply a bank or financial institution that handles your HSA account. It pays to shop around. Some trustees charge a variety of fees, others are almost free. There's a link on the sidebar of some we can recommend.

There's no requirement to fully fund your HSA immediately (or ever). Most trustees allow you to start with a small balance and increase it later if you need to.

Be sure to keep your reciepts. For the time being, the trustee won't ask you to prove your expenses are eligible (There are some Congress people trying to change that). It's up to you to keep records to prove your expenses are qualified.

2009 Contribution Limits:
Single Coverage: $3000
Families: $5950
Catch-up for those 55 and older: $1000

As promised we'll keep these short. If you would like further information on anything related to insurance please contact us.

Thank you!