How does an eligible individual establish an HSA?
Beginning January 1, 2004, any eligible individual can establish an HSA with a qualified HSA trustee or custodian, in much the same way that individuals establish IRAs or Archer MSAs with qualified IRA or Archer MSA trustees or custodians. No permission or authorization from the Internal Revenue Service (IRS) is necessary to establish an HSA. An eligible individual who is an employee may establish an HSA with or without involvement of the employer.
Beginning January 1, 2004, any eligible individual can establish an HSA with a qualified HSA trustee or custodian, in much the same way that individuals establish IRAs with qualified IRA trustees or custodians. No permission or authorization from the Internal Revenue Service (IRS) is necessary to establish an HSA.
Beginning January 1, 2004, any eligible individual (as described in A-2) can establish an HSA with a qualified HSA trustee or custodian, in much the same way that individuals establish IRAs. No permission or authorization from the Internal Revenue Service (IRS) is necessary to establish an HSA. An eligible individual who is an employee may establish an HSA with or without involvement of the employer.
Beginning January 1, 2004, any eligible individual (as described in Question #2) can establish an HSA with a qualified HSA trustee or custodian, in much the same way that individuals establish IRAs or Archer MSAs with qualified IRA or Archer MSA trustees or custodians. No permission or authorization from the Internal Revenue Service (IRS) is necessary to establish an HSA. An eligible individual who is an employee may establish an HSA with or without involvement of the employer.
Answer An eligible individual can establish an HSA with a qualified HSA trustee or custodian. No permission or authorization from the IRS is necessary to establish an HSA. (Notice 2004-2, Q-A #8). An HSA is considered established based on state tax law. In many states, the account must be funded before it is considered established. The establishment date is used to determine when distibutions can be reimbursed from the HSA for tax purposes. Question Are employer contributions comparable if the employer contributes the same amount of dollars per payroll to each employee whereby employees employed for a longer length of time will have more contributions at the end of the year? Answer Calculating comparability monthly is acceptable.
