Individuals and small businesses can make HSA contributions as allowed by a high-deductible health insurance plan. So you cannot have an HSA without a high-deductible plan. This acts very similarly to a Cafeteria Plan since you have an account that offers an instant tax deduction when you make contributions into your account. However, one major difference is that it is not a use it or lose it system- your money can accumulate, and you are allowed to invest it within the provision of the plan.
It is a foregone conclusion that when you get older you’ll need more medical attention. When you need a new hip at age 72, you’ll be drawing money from somewhere- either your 401k, IRAs or your HSA. So in some regards, your HSA becomes a tax-favorable retirement vehicle.
Dependent care benefits cannot be paid through your HSA, nor can an HSA pay for things like cosmetic surgery, fitness programs, maternity clothes, vitamins, etc.
Contribution limits for 2014 are $3,300 for singles, and $6,550 for family plans plus $1,000 each if you are 55 years or older (catchup).
Sole proprietors, single member LLCs and partners cannot have the company make a direct HSA contribution, yet are still allowed to take the deduction on Form 1040 (more on this in a bit).
Taxpayer's Comprehensive Guide to LLCs and S Corps