How do I set-up HSA for small business

bchezek Member Posts: 3 Newcomer

How do I set-up HSA for small business? Can I do it for a small business if I am the only employee?



  • PhillipB
    PhillipB FreeTaxUSA Team Posts: 33

    Hello, and thanks for joining our community.

    You would need to contact an HSA provider to set up an HSA. You can set up HSAs for yourself or in your business. Generally, the only reason you would need the HSA to be in the name of the business is if there are employees covered under the plan. The HSA plan you contact should have plenty of information to guide you on the best set-up for your situation. Plan costs will likely be the most important financial factor for the HSA structure.

    Let us know if there is anything else that we can do for you.

  • PamelaP
    PamelaP FreeTaxUSA Agent Posts: 10

    Hey bchezek,

    If you would like to have an HSA, the most important step is ensuring that you are enrolled in a qualifying High Deductible Health Plan (HDHP). To qualify for an HSA, your health insurance plan must meet the IRS criteria for an HDHP. Generally, the insurance provider can confirm whether they are a HSA qualified plan or not, but a summary of the qualifications includes the following:

    Minimum Deductible:

    The HDHP must have a minimum annual deductible. For the tax year 2024, the minimum deductible for self-only coverage is $1,600, and $3,200 for family coverage.

    Maximum Out-of-Pocket Expenses:

    A 2024 plan must limit the annual out-of-pocket expenses to $8,050 for self-only coverage and $16,100 for family coverage.

    No Other First-Dollar Coverage:

    Except for preventive care services, the HDHP cannot provide any benefits until the deductible for that year is met.

    Preventive Care Services:

    HDHPs are allowed to provide preventive care services without a deductible or with a deductible below the minimum annual deductible.

    In addition to being enrolled in a HDHP, you generally must not be covered under other health insurance, be enrolled in Medicare, or be claimed as a dependent.

    If you meet the qualifications, you can check with the insurance provider directly to see if they partner with an HSA provider. If not, you could sign up independently with an HSA provider.

    We’d also recommend checking out IRS Publication 969 for more detailed information:

    Publication 969 (2022), Health Savings Accounts and Other Tax-Favored Health Plans | Internal Revenue Service (