An HSA Custodian is a Qualified Trustee responsible for managing a Health Savings Account (HSA). These are special bank accounts, which individuals eligible for a high deductible health plan (HDHP) may use to save money to pay for their medical expenses tax-free. An HDHP is a type of health insurance plan with a higher annual deductible than what is typically offered. The money saved in an HSA can be used to pay deductibles, copays and coinsurance.

HSA Custodians, who provide trust services to HSAs, help to protect the assets held in these accounts. They are responsible for properly maintaining the accounts, investing assets, and managing any transactions, including transfers and withdraws. They also help to ensure that the funds are used for qualified medical expenses only.

Additionally, HSA Custodians have the responsibility of providing account holders with educational materials and financial advice. This enables them to make informed decisions about their HSAs, in addition to keeping track of their current and future health care expenses.

HSAs have become increasingly popular over the last few years. The money saved in HSA accounts for medical expenses are tax-deductible, so not only can account owners save money on their current medical needs, but they can also set aside funds for their future needs as well. The annual contribution limit is typically $3,500 for individuals and $7,000 for families, and these amounts may increase each year.

HSA Custodians are trusted, federally approved organizations that manage these types of accounts, helping individuals to save money while also offering them financial advice or educational materials when needed. It is important to thoroughly research and compare different HSA Custodians to ensure that the one chosen is reputable and offers the best service for the account holder.