Understanding HSA Eligibility: What Does It Mean?

Health Savings Account (HSA) eligibility refers to the requirements individuals must meet in order to open and contribute to an HSA.

Here are the key points to understand HSA eligibility:

• Individuals must be covered by a High Deductible Health Plan (HDHP).
• They cannot be claimed as a dependent on someone else's tax return.
• They cannot be enrolled in Medicare.
• They cannot have other health coverage that is not an HDHP.
• They must not be covered by a Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA).
• They must meet all other IRS requirements for HSA eligibility.

If an individual meets these criteria, they are considered eligible to open and start contributing to an HSA.

Health Savings Account (HSA) eligibility is crucial for anyone looking to maximize their healthcare savings. To qualify, individuals must be covered by a High Deductible Health Plan (HDHP), ensuring they are responsible for larger out-of-pocket costs before insurance starts covering expenses.