What are the requirements for an HSA in 2017?

Health Savings Accounts (HSAs) have become increasingly popular for individuals seeking to save for medical expenses while enjoying tax benefits. In order to qualify for an HSA in 2017, there are specific requirements that must be met:

1. You must be covered by a High Deductible Health Plan (HDHP).

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

3. You cannot be enrolled in Medicare.

4. You cannot have additional health coverage that is not an HDHP.

5. You must not be enrolled in a general-purpose Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA).

Meeting these requirements allows you to open and contribute to an HSA, providing you with a way to save pre-tax dollars for qualified medical expenses.

Health Savings Accounts (HSAs) provide an excellent option for individuals looking to set aside funds for healthcare costs while also enjoying significant tax benefits. To qualify for an HSA in 2017, you must meet several key requirements:

• First, you need to be enrolled in a High Deductible Health Plan (HDHP), which usually has lower premiums but higher deductibles.
• Additionally, ensure you are not claimed as a dependent on another person’s tax return, which would disqualify you.
• If you are 65 or older and enrolled in Medicare, your eligibility for an HSA also lapses.
• Having other health coverages may affect your eligibility unless they are HDHPs.
• Furthermore, if you are participating in a general-purpose Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA), you might not be able to contribute to an HSA.

You can maximize your tax savings by ensuring you meet these criteria so you can effectively save pre-tax dollars for qualified medical expenses.