Summary of Establishing Health Savings Accounts

You can open a health savings account in much the same way you open an individual retirement account. Choose a custodian or trustee, fill out an application, sign it, and return it. In some states, you may also have to make a minimum deposit to "fund" your account. Once your HSA account is established, you can begin using it to save tax-free money for future medical expenses. You can also choose to invest the funds in your account, provided that the custodian offers investment options. Your earnings on these investments will be tax-free.

On another note, be sure to designate a beneficiary for your account. That will ensure that your account funds are passed on where you want them and will minimize estate problems.