Can Someone with No Earned Income Contribute to a HSA?

Many individuals wonder whether they can contribute to a Health Savings Account (HSA) if they have no earned income. The general rule is that you must have earned income to be eligible to contribute to an HSA. Earned income includes wages, salaries, tips, and other taxable income received for personal services. If you do not have earned income, you typically cannot contribute to an HSA.

However, there are some exceptions to this rule:

• If your spouse has an HSA-eligible high-deductible health plan (HDHP) and earns income, you may be able to contribute to a family HSA, even if you have no earned income.
• If you are self-employed and have a net profit reported on Schedule C of your tax return, you may be eligible to contribute to an HSA.
• If you receive alimony, this may be considered earned income for HSA contribution purposes.
• If you receive disability benefits that are includible in your gross income, these amounts may also be considered earned income for HSA contributions.

It's essential to consult with a tax professional or financial advisor to determine your eligibility and understand any exceptions that may apply to your situation.

Many individuals wonder whether they can contribute to a Health Savings Account (HSA) if they have no earned income. Generally speaking, you need earned income to be eligible for contributions to an HSA. Earned income typically includes wages, salaries, tips, and other forms of taxable income derived from personal services.

However, there are exceptions to consider. For instance, if your spouse has a High Deductible Health Plan (HDHP) and earns an income, you might be able to contribute to a family HSA despite lacking your own earned income.

Furthermore, if you are self-employed and showing a net profit on Schedule C of your tax return, you could also qualify to contribute to an HSA. Other exceptions include receiving alimony, which might count as earned income for HSA purposes, and disability benefits that are includable in your gross income.

Always remember that consulting with a tax professional or financial advisor is key to understanding your eligibility and the nuances that might apply to your specific situation.