Can You Make HSA Contributions If You Have a Healthcare Sharing Ministry Plan?

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HSA contributions with sharing ministry plans

Health Savings Accounts (HSAs) have become popular for individuals looking to save for healthcare expenses while receiving tax benefits. However, many people wonder whether they can still make HSA contributions if they have a Healthcare Sharing Ministry Plan. The short answer is yes, but there are some considerations to keep in mind.

Healthcare Sharing Ministry Plans are not traditional health insurance plans but are programs where members contribute to cover each other's medical expenses. While these plans do not qualify as high-deductible health plans (HDHPs) as required for HSA eligibility, you may still be able to contribute to an HSA if you meet certain criteria:

Yes, you can make contributions to a Health Savings Account (HSA) while having a Healthcare Sharing Ministry Plan, but there are important eligibility criteria to understand.

Eligibility criteria and contribution limits

• You are not enrolled in Medicare
• You are not claimed as a dependent on someone else's tax return
• Your Healthcare Sharing Ministry Plan does not provide coverage for any medical expenses until you have reached a certain threshold

If you meet the above criteria, you can make HSA contributions while having a Healthcare Sharing Ministry Plan. Keep in mind that contributions to an HSA are still subject to the annual contribution limits set by the IRS. For 2021, the contribution limit for individuals is $3,600, and for families, it is $7,200.

What HSA funds can and can’t pay

It's important to note that while you can contribute to an HSA with a Healthcare Sharing Ministry Plan, you cannot use HSA funds to pay for sharing ministry contributions. HSA funds can only be used for qualified medical expenses as defined by the IRS.