Qualifications for HSA - Understanding the Requirements

Health Savings Account (HSA) is a valuable financial tool that offers tax benefits to individuals who meet certain qualifications. To be eligible to open and contribute to an HSA, there are specific requirements that must be met:

1. You must be covered by a High Deductible Health Plan (HDHP) that meets the IRS criteria for annual deductibles and out-of-pocket maximums.

2. You cannot be covered by any other health insurance plan that is not an HDHP, with few exceptions such as coverage for specific illnesses or accidents.

3. You must not be enrolled in Medicare.

4. You cannot be claimed as a dependent on someone else's tax return.

5. You must be under the age of 65. Once you turn 65, you can still keep your HSA, but you can no longer contribute to it.

If you meet these qualifications, you are eligible to open and contribute to an HSA. It is important to understand the requirements to take full advantage of the benefits that an HSA offers.

Health Savings Accounts (HSAs) have become increasingly popular due to their tax advantages, but to take advantage of them, certain requirements need to be fulfilled.