Yes. It specifically needs to be a Health Savings Account with a qualified provider recognized by the Treasury Dept. as providing these services. The administrator plays a critical role in providing the necessary IRS reporting and providing advice, and tax assistance throughout the life of the account. There is no third-party substantiation or adjudication of claims, therefore current reliable information and advice is very important.
Since an HSA is a tax-exempt trust, there are requirements per code 223(d) who can be a Trustee; the trustee is a bank, an insurance company, or another person that demonstrates to the satisfaction of the Treasury that the manner in which such persons will administer the trust will be consistent with the requirements of code 223(d).
In addition to the required IRS reporting, the administrator should have experience in MSA/HSA regulations and be accessible to provide advice. The account should be interest-bearing when it gets to a certain size, and provide longer-term investment capabilities such as mutual funds, stocks and bonds the same way an IRA or 401(k) account does.
Click here for more information about establishing an HSA
What is an HSA?
Why an HSA?
Who is eligible for an HSA?
Is an HSA right for everyone?
Do I need a certain type of Insurance Plan?
Do I need a certain type of account?
Employer Benefits of HSA Plans
Employee Benefits of HSA Plans
HSA Tax Treatment
Tax Treatment: Inviduals
Tax Treatment: Employer Contributions
How are Distributions Taxed?
Who May Contribute?
How much may be contributed to an HSA in calendar year 2006?
Tax Treatment of Contributions
What are catch up Contributions?
What are “Qualified Medical Expenses?”
Are health insurance premiums qualified medical expenses?
How are claims adjudicated and processed?
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