To follow is a question I asked in the operations compliance forum along with the answer I received:
QUESTION
Our bank is looking into offering HSA's. As the Compliance Manager I have been trying to research the compliance issues regarding these types of accounts. I was wondering two things: First, am I understanding correctly that these accounts do not have to be savings accounts and can be set up as NOW accounts or even checking accounts? If set up as a savings account then it would be subject to savings account regulations, such as the limited number of transactions allowed in a cycle or if set up a s a NOW account then it would be subject to those regulations and not subjected to a limited number of transactions...Do I have that right in my head? I was at a compliance seminar and they were saying that you had to limit the number of transactions but didn't specify if that meant if they were set up as savigns accounts or not.
Any feedback is greatly appreciated.
RESPONSE

1. How you can set up the account may depend on state law.

2. Yes, if it is set up as a savings account then it subject to the Reg D limitations

SO: My question I am asking now are there other compliance officers from Missouri that would help point me in the direction for researching any state laws applicable to setting up these types of accounts or share any of their experience with these types of accounts?
Thank you for any help.

HSAs are governed by IRS regulations and not State law. There are no restrictions on the type of account in which the HSA may be held.