How to Set Up Your HSA

Tags: Finance, Spending Accounts

The Basics

A health savings account (HSA) is an individually owned, tax-advantaged account that may be used to pay for qualified medical expenses or saved for retirement and long-term care expenses. It is portable, so you do not give up the account when you change jobs or leave American.

The Benefits

The biggest benefit to using an HSA is tax savings. An HSA is tax-advantaged in three ways, known as the “triple tax advantage.”

  • Contributions you make to the HSA are tax-deductible.
  • Earnings on the HSA balance are not taxed.
  • Funds withdrawn to pay qualified medical expenses are not subject to income taxes or penalties.


Setting Up Your Account

To be eligible for an HSA, you must be enrolled in American’s Core medical option.
When you elect the Core option either during Annual Enrollment, as a newly eligible team member, or as the result of qualified status change, an HSA account will be opened automatically through UMB.

After you account has been opened you should receive the following:

  • Welcome letter from UMB containing your account number and contact information.
  • YSA card with HSA frequently asked questions (FAQs) and card usage tips.
  • Quarterly account statements detailing your account activity, or monthly if you choose electronic statements.
  • Form 1099-SA at the end of each calendar year detailing all distributions for tax purposes. Also, the following April, you will receive a 5498-SA with the total annual contribution for the prior year.


Beneficiary Designation
Assigning a beneficiary designation to your HSA account ensures that your assets are appropriately assigned upon your death. You can access a beneficiary designation form on the website through the “Learn About Health Savings Accounts” link on the Benefits Service Center.

Eligible Expenses

Review your Health Savings Account eligible expenses.

Find Support

Still have questions? Check out the HSA Frequently Asked Questions or contact the Benefits Service Center at 1.888.860.6178.