How to Open a Health Savings Account Without an Employer

You need a high-deductible health plan first — you cannot open an HSA on its own

A Health Savings Account (HSA) is always tied to a specific type of health insurance called a high-deductible health plan (HDHP). You cannot open an HSA without one. If you have an HDHP through your employer, your employer often sets up the HSA for you. If you buy your own health insurance, you choose both the HDHP and the HSA bank separately — but the HDHP comes first.

The IRS sets minimum deductibles each year. For 2024, a self-only HDHP must have a deductible of at least $1,600, and a family plan must have a deductible of at least $3,200. Your plan documents will tell you whether it qualifies as an HDHP. If it does not say "high-deductible" or meet those minimums, you cannot open an HSA, even if you want to.

Once you have confirmed your health plan is an HDHP, you can open an HSA with a bank, credit union, or financial institution that offers them. You do not need your insurance company's permission, and you do not have to use the bank your insurance company recommends — though some employers or insurers do offer HSAs as part of their enrollment package.

Key Takeaways

You must have a high-deductible health plan before you can open an HSA; the two cannot be separated.
If you buy your own health insurance through the marketplace or directly from an insurer, you choose your HDHP and your HSA bank as two separate decisions.
Banks, credit unions, and investment firms all offer HSAs, and you can shop around for fees, interest rates, and investment options.
You will need your health plan documents and Social Security number to open an HSA, and the process usually takes a few days to a week.

Finding and buying your own high-deductible health plan

If you do not have employer health insurance, you buy an HDHP the same way you would buy any other health plan. The most common route is the Health Insurance Marketplace (Healthcare.gov or your state's marketplace), where you can compare plans side by side and see which ones are labeled as high-deductible options.

You can also buy directly from an insurance company's website or through a broker. When you are shopping, look for the plan's deductible amount — it must meet the IRS minimum for that year. The plan documents or summary should state whether it qualifies as an HDHP. If you are unsure, call the insurance company and ask directly: "Is this plan an IRS-may have access to high-deductible health plan?"

Once you have enrolled in an HDHP, you will receive plan documents and a member ID. Keep these handy — you will need them when you open your HSA account.

Choosing a bank or financial institution for your HSA

After you have your HDHP in place, you can open an HSA with any bank, credit union, or investment firm that offers them. Major banks like Fidelity, Lively, HealthEquity, and Optum all offer HSAs, as do many regional banks and credit unions. You are not locked into your insurance company's choice.

When you compare HSA providers, look at three things: monthly or annual fees, interest rates on savings (if you plan to keep money in the account rather than spend it), and investment options (if you want to invest your HSA funds in stocks or mutual funds). Some providers charge no fees if you keep a minimum balance; others charge a flat fee regardless. Some offer no interest; others offer competitive rates. Some let you invest; others keep your money in a savings account only.

You can have only one HSA at a time, so choose one provider and stick with it. If you later want to switch providers, you can roll your HSA balance to a new bank, though this takes a few weeks.

What you need to open an HSA account

When you are ready to open an account, gather these documents: your Social Security number, proof of your HDHP enrollment (your plan documents, member ID card, or a letter from your insurance company), your current address, and a government-issued ID. Some providers also ask for your employer name and address, even if you are self-employed — just enter your own information.

Most HSA providers let you open an account online in 10 to 15 minutes. You will enter your personal information, choose your account type (individual or family), link a bank account for deposits, and confirm your HDHP details. The provider will verify your HDHP with the insurance company, which usually takes one to three business days. Once verified, your account is active and you can start depositing money.

Some providers mail you a debit card; others require you to request one after opening the account. Ask about this when you open the account if you plan to use the card right away.

Contributing money to your HSA

Once your account is open, you can deposit money whenever you want. The IRS sets annual contribution limits. For 2024, the limit is $4,150 for self-only coverage and $8,300 for family coverage. You can contribute all at once or spread deposits throughout the year. If you are self-employed or have no employer HSA, you are responsible for tracking your own contributions and reporting them on your tax return.

You can deposit money by bank transfer, check, or automatic payroll deduction (if you are self-employed and set up your own payroll). Some providers also let you deposit by mail. Keep records of every deposit — you will need them for your tax return.

Tax reporting for your self-opened HSA

If your employer set up your HSA, your employer reports contributions on your W-2 form and you do not report them again. If you opened your own HSA, you report your contributions on Form 8889 when you file your tax return. This form tells the IRS how much you contributed, how much you spent on medical expenses, and how much is left in the account.

You do not pay income tax on money you contribute to an HSA, and you do not pay tax on money you withdraw to pay for may have access to medical expenses. If you withdraw money for non-medical reasons, you pay income tax on that amount plus a 20 percent penalty (unless you are over 65, in which case you pay income tax only). Keep receipts for all medical expenses you pay with HSA money — the IRS can ask for proof years later.

Moving or closing your HSA

If you change health plans and your new plan is not an HDHP, you can no longer contribute to your HSA, but you can keep the account open and spend down the balance on medical expenses. The money does not expire.

If you want to move your HSA to a different bank, you can do a trustee-to-trustee transfer, which moves your balance directly from one provider to another without touching your hands. This usually takes one to three weeks. You can do this transfer once per year per provider, though you can do unlimited transfers between different providers in a single year.

If you close your HSA and withdraw the balance, you pay income tax on the amount and a 20 percent penalty if the money was not spent on may have access to medical expenses.

Frequently Asked Questions

Can I open an HSA if I am self-employed?

Yes, as long as you have an HDHP. You buy the HDHP yourself (through the marketplace or directly from an insurer), then open an HSA with any bank. You report your contributions on Form 8889 when you file your tax return. You are responsible for staying within the annual contribution limit.

What if my health plan says "high deductible" but the insurance company says it is not an IRS-may have access to HDHP?

The insurance company's answer is the one that matters. A plan must meet specific IRS rules — not just have a high deductible. Call the insurance company and ask them to confirm in writing whether the plan qualifies. If it does not, you cannot open an HSA with that plan.

Can I open an HSA if I am on Medicare?

No. Once you enroll in Medicare, you are no longer covered by an HDHP, so you cannot contribute to an HSA. You can keep an existing HSA and spend the balance on medical expenses, but you cannot add new money.

Do I have to use my HSA debit card, or can I pay out of pocket and reimburse myself later?

You can do either. Some people pay medical bills with their own money and reimburse themselves from the HSA later — sometimes months or years later. Keep the receipt as proof. Other people use the HSA debit card at the point of care. Both methods are allowed.

What happens to my HSA if I change jobs?

Your HSA stays yours. It does not belong to your employer. If your new job offers an HSA, you can keep your old one or open a new one — but you can only contribute to one HSA at a time. If your new job does not offer an HDHP, you keep your old HSA and can spend the balance on medical expenses, but cannot add new money.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.