Do I Need Earned Income to Contribute to an HSA?

If you are wondering whether you need earned income to contribute to a Health Savings Account (HSA), the answer is yes. To be eligible to contribute to an HSA, you must have earned income, such as wages or salaries, as opposed to unearned income like dividends or rental income. HSA contributions are typically made through payroll deductions, so having earned income is a requirement.

HSAs offer a tax-advantaged way to save for medical expenses, providing individuals with control over their healthcare costs. It is important to understand the eligibility criteria and contribution limits when considering opening or contributing to an HSA. If you have earned income and are enrolled in a high-deductible health plan (HDHP), you can take advantage of the benefits of an HSA.

To contribute to a Health Savings Account (HSA), it’s essential to have earned income, which includes regular wages or salaries. Unlike dividends or rental income, only earned income qualifies for making contributions. Therefore, having a job with earned income ensures you can take advantage of the savings and tax benefits HSAs offer.