What are the eligibility requirements for an HSA?

What are the eligibility requirements for an HSA?

To be eligible for a Health Savings Account (HSA), you must be enrolled in a high-deductible health plan (HDHP). You cannot be covered by any other health plan that is not an HDHP, and you cannot be enrolled in Medicare.

What qualifies as a high-deductible health plan?

A high-deductible health plan (HDHP) is defined by the IRS. For 2023, it must have a minimum deductible of $1,500 for individual coverage and $3,000 for family coverage.

Are there any age restrictions for opening an HSA?

No, there are no age restrictions for opening an HSA. However, you must be under 65 and not enrolled in Medicare to contribute to the account.

Can I use HSA funds for non-medical expenses?

Yes, you can use HSA funds for non-medical expenses, but if you do so before age 65, you'll incur a 20% penalty and income tax on the amount.

What happens to my HSA if I change jobs?

Your HSA is yours to keep, even if you change jobs. You can continue to use the funds for qualified medical expenses.