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 as a plan with a minimum deductible of $1,400 for individual coverage and $2,800 for family coverage in 2023. Additionally, the out-of-pocket maximums cannot exceed $7,050 for individuals and $14,100 for families.

Can I contribute to an HSA if I have other health insurance?

No, you cannot contribute to an HSA if you are covered by any other health insurance that is not an HDHP. However, there are some exceptions, such as certain types of limited coverage.

What happens if I don't meet the eligibility requirements?

If you don't meet the eligibility requirements for an HSA, you cannot contribute to the account, and any contributions made may be subject to taxes and penalties.