Is a $5500 Deductible Still HSA Eligible? - HSA Awareness Article

If you're wondering whether a $5500 deductible is still HSA eligible, you're in the right place. Health Savings Accounts (HSAs) have specific rules and limits when it comes to deductibles and contributions, so let's break it down for you.

Firstly, yes, a $5500 deductible can still be HSA eligible. To be eligible for an HSA, your health insurance plan must meet certain criteria set by the IRS. Here are some key points to consider:

• Your deductible must meet the minimum required amount for HSA eligibility.
• For an individual in 2021, the minimum deductible to qualify for an HSA is $1400, and for a family, it is $2800.
• The maximum out-of-pocket limit for an HSA-eligible HDHP (High Deductible Health Plan) in 2021 is $7000 for an individual and $14000 for a family.
• Contributions to an HSA are tax-deductible and can be used to pay for qualified medical expenses tax-free.
• Individuals can contribute up to $3550, and families can contribute up to $7100 to their HSA in 2021.
• Account holders aged 55 and older can make an additional catch-up contribution of $1000 per year.

Having an HSA can provide you with a tax-advantaged way to save for healthcare costs both now and in the future. By understanding the rules and limits, you can maximize the benefits of your HSA while ensuring compliance with IRS regulations.

Yes, even with a $5500 deductible, your health plan can still qualify for an HSA. Just ensure it meets IRS requirements.