Can I Put Money in My HSA with COBRA Coverage?

If you have COBRA coverage, you may wonder whether you can still contribute money to your Health Savings Account (HSA). COBRA, the Consolidated Omnibus Budget Reconciliation Act, allows qualified individuals to continue their employer-sponsored health insurance for a limited time after losing their job or facing other qualifying events.

Here's what you need to know about contributing to your HSA while under COBRA:

• Yes, you can contribute to your HSA while you have COBRA coverage.
• You can contribute up to the annual HSA contribution limit, even if you have COBRA.
• Contributions to your HSA while on COBRA are still tax-deductible.
• You can use the funds in your HSA to pay for qualified medical expenses, even if you're on COBRA.
• Keep in mind that COBRA itself is not a qualified high-deductible health plan (HDHP), which is a requirement for HSA eligibility.

It's important to ensure that you meet all HSA eligibility requirements and that you understand how COBRA impacts your health coverage and HSA contributions. Consulting with a financial advisor or tax professional can help you navigate any concerns you may have.

Yes, you can definitely put money into your HSA while you have COBRA coverage, which is a great way to continue saving for future medical expenses.