Can I Contribute to an HSA Under COBRA?

Many individuals wonder if they can contribute to a Health Savings Account (HSA) while under COBRA coverage. The simple answer is yes, you can continue to contribute to an HSA while on COBRA as long as you meet the eligibility requirements.

When you are on COBRA, you are still eligible to maintain your HSA and make contributions. However, there are a few important factors to consider:

• You must be enrolled in a High Deductible Health Plan (HDHP) to contribute to an HSA. COBRA coverage is considered an HDHP, so you are eligible to contribute.
• Make sure you have not enrolled in Medicare if you want to continue contributing to your HSA. Enrolling in Medicare will disqualify you from contributing to an HSA.
• Contributions made while on COBRA are still tax-deductible, and the funds can be used for qualified medical expenses.

It's important to stay informed about the rules and regulations surrounding HSAs and COBRA to make the most of your healthcare benefits. If you have any specific questions about your situation, it's recommended to consult a healthcare or tax professional.

Many people wonder whether they can contribute to a Health Savings Account (HSA) while on COBRA coverage. The answer is a resounding yes! As long as you meet the eligibility criteria, continuing your contributions is entirely possible.