Are Short Term Plans Eligible for HSA?

One common question that often arises when discussing Health Savings Accounts (HSAs) is whether short term plans are eligible for HSA contributions. To answer this question, it's important to understand the guidelines set by the IRS regarding HSA eligibility.

HSAs are designed to work with High Deductible Health Plans (HDHPs), and not all health insurance plans qualify for HSA compatibility.

Short term health insurance plans typically do not meet the requirements to be considered an HDHP, which means they are not eligible for HSA contributions.

However, there are some exceptions to this rule, such as:

• If the short term plan meets the IRS criteria for being an HDHP
• If the short term plan covers preventive care without a deductible

It's essential to review the specific details of your short term health insurance plan to determine if it qualifies for HSA contributions. Consulting with a financial or healthcare expert can help clarify any uncertainties.

When considering whether short term health plans are eligible for HSA contributions, it’s crucial to note that these plans generally do not align with the IRS's requirements for a High Deductible Health Plan (HDHP). Therefore, they are often ineligible for HSA contributions.