Who is Covered by HSA? Understanding Health Savings Account Coverage

A Health Savings Account (HSA) is a valuable tool for individuals and families to save money for medical expenses while enjoying tax benefits. But who exactly is covered by an HSA?

Here are the key points to understand about who is covered by an HSA:

• Individuals with a High Deductible Health Plan (HDHP): To be eligible for an HSA, you must be covered by an HDHP.
• The HSA Account Holder: The primary account holder owns and manages the HSA.
• Spouse and Dependents: Expenses for your spouse and dependents can be paid with funds from your HSA.
• Non-Tax Dependents: Even if someone is not claimed as a dependent on your tax return, you can still use HSA funds for their qualified medical expenses.

A Health Savings Account (HSA) offers a unique opportunity for individuals and families to set aside money for healthcare costs while gaining significant tax advantages. Understanding the coverage of an HSA is essential for maximizing its benefits.