What you need to know

What is a third-party administrator/health administrator/custodian?

An HSA custodian is very much like a bank and your HSA account initially works like a bank account. You can make deposits and withdraw money with checks and/or a debit card.

You can choose your custodian, and your HSA administrator may be selected by your employer, as they have selected the custodian to which they will make contributions, and may offer other incentives such as waiving service fees, etc

An HSA administrator usually falls into one of three categories: third-party vendors; health plans/health insurance providers; and banks. The IRS defines third-party administrators (TPAs) as, “Nonbank trustees or nonbank custodians (NBT) are described under Treasury Regulations Section 1.408-2(e). An entity that is not a bank (or an insurance company in the case of Archer Medical Savings Accounts and health savings accounts) can request to be a nonbank trustee/custodian by applying in writing and demonstrating that certain requirements will be met in order to handle any of the following fiduciary accounts:

Archer Medical Savings Account (MSA)

Qualified Retirement Plan Custodial Account

403(b)(7) Custodial Account

Roth IRA

Deferred Compensation Plan of State & Local Government and Tax Exempt Organizations Custodial Accounts

Coverdell Education Savings Account”

Coaches' Takeaway

Think of these like a bank—you can deposit and withdraw money for medical expenses.

Tools & Resources

CDHPCoach’s Storage Facility, where the Coach has organized and compiled a vast amount of tools and resources for you to access.


Housed here are key components and information within the book, Bend the Healthcare Trend which was the impetus behind the CDHPCoach.


What you need to know