Can I Contribute to an HSA If I Have COBRA Coverage?

Are you wondering if you can contribute to a Health Savings Account (HSA) while being covered under COBRA (Consolidated Omnibus Budget Reconciliation Act)? The answer is yes, you can contribute to an HSA while having COBRA coverage. However, there are a few important things to keep in mind.

When you have COBRA coverage, you are still considered to have an HSA-qualified high deductible health plan (HDHP) as long as your COBRA coverage is for an HDHP. This means you can continue to contribute to your HSA as long as you meet the eligibility criteria for an HSA.

Here are some key points to consider when contributing to an HSA with COBRA coverage:

• Ensure your COBRA coverage is for an HDHP.
• Verify that you meet the eligibility requirements for an HSA.
• Remember that your contribution limits might be prorated if you didn't have an HDHP for the full year.
• Keep track of your contributions to avoid exceeding the annual contribution limits.

By understanding these factors and staying informed about your HSA and COBRA coverage, you can make the most of your healthcare benefits and savings opportunities.

Absolutely! If you're covered by COBRA, you can still make contributions to your Health Savings Account (HSA) as long as your COBRA coverage is linked to a high deductible health plan (HDHP). This allows you to continue enjoying tax-free savings for your healthcare costs.