What Disqualifies You for HSA? - Understanding the Eligibility Criteria for Health Savings Account

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while enjoying tax benefits. However, not everyone is eligible to open or contribute to an HSA. It's important to understand the criteria that may disqualify you from having an HSA.

Here are some common factors that can disqualify you from having an HSA:

• Having other health coverage that is not HSA-qualified, such as a flexible spending account (FSA) or health reimbursement arrangement (HRA).
• Being enrolled in Medicare.
• Being claimed as a dependent on someone else's tax return.
• Being covered by a spouse's flexible spending account (FSA).
• Receiving Veterans Administration (VA) benefits within the past three months for a non-service-connected disability.
• Having received Social Security disability benefits within the past three months.

It's essential to review the eligibility criteria for HSAs to ensure that you qualify before opening an account. If you are unsure about your eligibility, consult with a tax or financial advisor for guidance.

Health Savings Accounts (HSAs) can be an incredible tool for managing your healthcare costs, but it's vital to know what might prevent you from opening one. Understanding disqualifications such as having non-HSA-compatible health plans or being enrolled in Medicare is crucial.