Do I Have to Have a HDHP to Have an HSA?

Many people wonder whether having a High Deductible Health Plan (HDHP) is a requirement to have a Health Savings Account (HSA). The short answer is yes, you must have an HDHP to be eligible for an HSA. Your HDHP must meet specific criteria set by the IRS.

Here are some key points to keep in mind:

• Having an HDHP is a prerequisite for opening an HSA.
• The HDHP must meet certain minimum deductible and maximum out-of-pocket limits set by the IRS.
• Contributions to your HSA can be made by you, your employer, or both, but there are annual contribution limits that apply.

It's essential to understand the relationship between an HDHP and an HSA when considering this healthcare savings option. By having both, you can take advantage of tax savings and have funds set aside for medical expenses.

Have you been wondering if a High Deductible Health Plan (HDHP) is a must-have to open a Health Savings Account (HSA)? The straightforward answer is yes, an HDHP is indeed required. But don't worry; it’s designed to help you save money on healthcare costs!