How to Find Out if You Qualify for HSA

Health Savings Accounts (HSAs) are a great way to save money for medical expenses while also receiving tax benefits. To determine if you qualify for an HSA, there are certain criteria you need to meet:

1. You must be enrolled in a High Deductible Health Plan (HDHP):

• For 2021, the minimum deductible for an HDHP is $1,400 for individuals and $2,800 for families. The out-of-pocket maximum cannot exceed $7,000 for individuals and $14,000 for families.

2. You cannot be enrolled in Medicare or claimed as a dependent on someone else's tax return.

3. You must not have additional health coverage such as being covered by another health plan that is not an HDHP, with exceptions for specific types of coverage like dental, vision, disability, or long-term care insurance.

If you meet these criteria, congratulations – you qualify for an HSA! You can start contributing to your HSA and enjoy the benefits it offers.

Health Savings Accounts (HSAs) provide individuals with a fantastic opportunity to save money for healthcare expenses while enjoying tax advantages. To be eligible for an HSA, there are several important criteria that you need to fulfill:

1. You must be enrolled in a High Deductible Health Plan (HDHP):

• As of 2021, the minimum annual deductible for an HDHP is set at $1,400 for individual plans and $2,800 for family plans. Additionally, the out-of-pocket expenses cannot surpass $7,000 for individuals and $14,000 for families.

2. It’s important to note that you cannot be enrolled in Medicare or be claimed as a dependent on someone else's tax return. This ensures that HSA benefits are targeted towards those who are actively working and contributing to their healthcare savings.

3. Ensure you do not have additional health insurance coverage that includes plans other than HDHPs. Exceptions may apply for certain types of coverage, such as dental, vision, disability, or long-term care insurance, which won’t disqualify your HSA eligibility.

If you meet these criteria, then you’re in luck – you qualify for an HSA! Start contributing today and take full advantage of the tax savings and medical expense coverage that an HSA can provide.