Do You Have to Be Working to Contribute to an HSA?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One common question that people have is whether they need to be working to contribute to an HSA.

The short answer is that you generally need to have a high deductible health plan (HDHP) to be eligible to contribute to an HSA, but you do not necessarily need to be working to make contributions.

Here are some scenarios where you can contribute to an HSA even if you are not currently working:

• Spouse's Plan: If your spouse has a family HDHP and includes you in their plan, you can contribute to an HSA.
• Retirement: If you are enrolled in Medicare or Social Security and have an HSA from when you were working, you can still use the funds for qualified medical expenses.
• COBRA: If you have an HSA from when you were employed and elect COBRA continuation coverage, you can continue to contribute to your HSA.

It's important to note that if you contribute to an HSA without being enrolled in a HDHP, you may face tax penalties. Make sure to understand the eligibility requirements before making contributions.

Many people wonder if employment status affects their ability to contribute to a Health Savings Account (HSA), but the good news is that it's not a strict requirement! The key factor here is having a high deductible health plan (HDHP).