Can I Contribute to an HSA if I Have COBRA from a High Deductible Plan?

If you have COBRA coverage from a high deductible health plan, you may wonder if you can still contribute to a Health Savings Account (HSA). The short answer is yes, you can contribute to an HSA while on COBRA as long as you meet certain requirements.

Here's what you need to know:

• To contribute to an HSA, you must be enrolled in a high deductible health plan (HDHP) and not be covered by any other non-HDHP health insurance.
• Having COBRA coverage does not disqualify you from contributing to an HSA as long as your COBRA plan is still considered an HDHP.
• When you have COBRA coverage, you are still eligible to make contributions to your HSA, just as if you were still enrolled in your employer's plan.
• Contributing to an HSA while on COBRA can be a valuable way to continue saving for medical expenses tax-free.

Remember to keep track of your contributions and make sure you are following all IRS guidelines to avoid any penalties.

If you're navigating the complexities of health insurance and you have COBRA coverage from a high deductible plan, you might be wondering about your ability to contribute to a Health Savings Account (HSA). Fortunately, you can earn tax-free savings for medical expenses through your HSA as long as you meet specific conditions.