Can You Contribute to HSA If Not on High Deductible? - Exploring HSA Contribution Rules

Health Savings Accounts (HSAs) are a valuable tool for saving money on healthcare expenses while also enjoying tax benefits. Many people wonder if they can contribute to an HSA even if they are not on a high-deductible health plan. The short answer is no, individuals must be enrolled in a high-deductible health plan (HDHP) to qualify for an HSA. However, there are certain exceptions and considerations to keep in mind.

Here's what you need to know about contributing to an HSA:

• To contribute to an HSA, you must be covered by an HDHP
• The minimum deductible for an HDHP in 2021 is $1,400 for individuals and $2,800 for families
• Individuals under the age of 65 can contribute up to $3,600 to an HSA in 2021, while families can contribute up to $7,200
• Individuals aged 55 and older can make an additional catch-up contribution of $1,000 per year

While it's true that to contribute to a Health Savings Account (HSA), you generally need to be enrolled in a high-deductible health plan (HDHP), there are various factors and statuses that could impact your eligibility. If you switch health plans or your employer offers a different option, always double-check your status regarding HSA contributions.