Whether you are researching HSAs for the first time or you are ready to open a new account, you may come across a few terms that are unfamiliar to you. One of these is an HSA custodian, which may also be called a health savings admin. What is an HSA custodian, and how does the custodian impact your new HSA account?

Choosing Your Health Savings Admin

An HSA admin or custodian is an entity that manages Health Savings Accounts. More specifically, it is an IRS-approved bank, brokerage firm, insurance company or other entity. If you qualify for your HSA through your employer, the custodian will already be selected. Generally, you may have the option to switch even if you have been automatically enrolled with a specific HSA custodian. If you are setting up an HSA on your own, you can compare your options to find the admin that is a good fit for you. If you need health savings admin, visit this website.

It is easy to assume that all HSA admins would be comparable, but this is not the case. There are differences in fees, interest rates on established balances and even investment options. Each of these factors dramatically impacts the overall financial benefits that a Health Savings Account provides. Because of this, you should carefully review your options. Before finalizing your selection, ensure that your account will be insured by the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation.

Compare Your Options Today

You are permitted to allocate up to $3,000 per year to your HSA if you are an individual or up to $7,000 if you have a family. While you understandably want to use this tax-advantaged account to pay for out-of-pocket medical expenses, the account value can grow over time. With this in mind, it makes sense to take control of the full benefits an HSA provides by comparing custodians today.

Read a similar article about “are HSA contributions tax deductible?” here at this page.