Can I Put Money in HSA if on COBRA? Understanding HSA Benefits While Under COBRA

When you're on COBRA, you may wonder if you can still contribute to a Health Savings Account (HSA). The short answer is: Yes, you can put money into an HSA while on COBRA coverage. However, there are some things to consider before making contributions.

COBRA, which stands for the Consolidated Omnibus Budget Reconciliation Act, allows you to continue your employer-sponsored health insurance coverage for a limited period if you lose your job or have a reduction in work hours. Here's how it relates to HSAs:

While you are on COBRA, you can still contribute to your HSA if you meet the following criteria:

• You are enrolled in a high-deductible health plan (HDHP)
• You are not enrolled in Medicare
• You are not claimed as a dependent on someone else's tax return

It's important to note that premiums for your COBRA coverage cannot be reimbursed from your HSA. However, other qualified medical expenses, such as copayments, deductibles, and prescription medications, can be paid for using HSA funds.

Here are some key points to remember about contributing to an HSA while on COBRA:

• Yes, you can make contributions to your HSA while on COBRA
• You must meet the eligibility criteria for an HSA
• You cannot use HSA funds to pay for COBRA premiums
• You can use HSA funds for other qualified medical expenses

Yes, while you're on COBRA, you can contribute to your HSA, provided that you are enrolled in a high-deductible health plan (HDHP) and meet specific eligibility criteria.