HSA For One Employee

We are the plan administrator for a client that sponsors a 401(k) plan with about 30 participants. We do not administer cafeteria plans or anything outside of qualified plans.

I know it is popular for an employer to have a high deductible insurance plan for employees and then also offer HSA to all employees.

Is it possible for just one employee to establish and maintain their own HSA? The employer will not be providing HSAs to employees.

Question:  Is this possible? If so, I would think the employee would need to meet the requirements (be covered by an insurance plan that qualifies as a high deductible policy).

Yes, HSAs are an individually-owned account and therefore can be opened outside of the employer relationship.  There are plenty of HSA custodians out there willing to take your money, including many of the big name financial houses.  That can be done without any employer involvement.

As you noted, the employee will have to be enrolled in an HDHP and meet the other HSA eligibility requirements to establish and contribute to an HSA. 

Here's a detailed overview of the HSA eligibility rules:

• https://www.newfront.com/blog/the-hsa-eligibility-requirements-part-1
• https://www.newfront.com/blog/the-hsa-eligibility-requirements-part-2

Here's a quick slide summary:

2025 Newfront Go All the Way with HSA Guide