Who Can Contribute to an HSA? | Understanding Health Savings Account Eligibility

Health Savings Accounts (HSAs) are a valuable tool for individuals looking to save on medical expenses while enjoying tax benefits. One of the common questions about HSAs is, who can contribute to them? Let's break it down.

Contributions to an HSA can be made by:

• Individuals:
• Employers:
• Family Members:

Individuals who meet certain eligibility criteria can contribute to an HSA. This includes individuals who are:

• Enrolled in a High Deductible Health Plan (HDHP):
• Not covered by any other health insurance plan:
• Not enrolled in Medicare:

Employers can also contribute to their employees' HSAs, providing an additional benefit to attract and retain talent. Family members of the account holder can also make contributions to the HSA, allowing for collective savings.

It's important to note that the total contributions to an HSA in a year are subject to limits set by the IRS. For 2021, the contribution limits are $3,600 for individuals and $7,200 for families.

Health Savings Accounts (HSAs) not only provide tax advantages but also empower individuals to manage their healthcare costs more effectively. Understanding who can contribute to an HSA is crucial in maximizing these benefits.