HSA Guide
Can You Have an HSA if You Are Not Working?
Published December 5, 2022
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Many people wonder whether they can have a Health Savings Account (HSA) if they are not currently working. The short answer is yes, you can have an HSA even if you are not working, as long as you meet certain eligibility requirements.
HSAs are great tools for saving money on medical expenses, and they offer tax advantages that make them a popular choice for many individuals and families. Let's explore the details of having an HSA without being employed:
Rules for opening and using an HSA
- Qualifying for an HSA: To have an HSA, you need to be covered by a High Deductible Health Plan (HDHP). This is true whether you are working or not. If you have an HDHP through your spouse's employer or a private plan, you can still open an HSA in your name.
- Contribution Limits: The contribution limits for an HSA are the same whether you are employed or not. In 2021, the limit is $3,600 for individuals and $7,200 for families. If you are 55 or older, you can make an additional $1,000 catch-up contribution.
- Using HSA Funds: You can use the funds in your HSA to pay for qualified medical expenses, even if you are not currently working. This includes expenses like doctor visits, prescriptions, and more.
- Portability: HSAs are portable, meaning you can keep your account and continue to use it even if you change jobs or become unemployed.
Having an HSA when you are not working can provide valuable financial flexibility for healthcare costs. It's important to stay informed about the rules and regulations regarding HSAs to make the most of this savings opportunity.
Remaining options when unemployed
If you find yourself unemployed, you might think that your health savings options have diminished, but thatâs not necessarily the case. Having a Health Savings Account (HSA) is still a viable option if you have coverage from a High Deductible Health Plan (HDHP) â whether it be through a spouse, family member, or even a marketplace plan.