How Do I Know If I Can Contribute to an HSA? - Understanding HSA Eligibility

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. One of the key factors in determining your eligibility to contribute to an HSA is being enrolled in a High Deductible Health Plan (HDHP).

Here are some factors to consider when determining if you can contribute to an HSA:

• Check if you are enrolled in a High Deductible Health Plan (HDHP). The minimum annual deductible for an HDHP in 2021 is $1,400 for individuals and $2,800 for families.
• Ensure you are not covered by another health plan that is not an HDHP, such as a spouse's plan or Medicare.
• Confirm that you are not claimed as a dependent on someone else's tax return.

If you meet the eligibility criteria, you can contribute to an HSA and enjoy the tax advantages it offers. Remember, contributions to an HSA are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are tax-free.

Wondering if you can contribute to a Health Savings Account (HSA)? Start by checking if you're enrolled in a qualifying High Deductible Health Plan (HDHP), which is crucial for HSA eligibility. For the year 2023, the minimum annual deductible for individuals is $1,500, and for families, it's $3,000.