Who Is Eligible for HSA? Understanding HSA Eligibility Criteria

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare costs, but not everyone is eligible to open one. To be eligible for an HSA, individuals must meet certain criteria defined by the IRS.

Here are the key eligibility requirements for an HSA:

• Be covered by a High Deductible Health Plan (HDHP)
• Not be covered by other health insurance that is not an HDHP
• Not enrolled in Medicare
• Not claimed as a dependent on someone else's tax return
• Not enrolled in a Flexible Spending Account (FSA) that covers medical expenses
• Meet all other IRS requirements for HSAs

Individuals who meet these criteria can open and contribute to an HSA. Contributions to an HSA are tax-deductible, and the funds can be used to pay for qualified medical expenses tax-free.

It's important to note that HSA eligibility can change based on individual circumstances, so it's essential to stay informed about the latest IRS guidelines.

Are you considering opening a Health Savings Account (HSA)? Understanding the eligibility criteria is the first step. To qualify for an HSA, you must be enrolled in a High Deductible Health Plan (HDHP), which means your insurance plan has a higher deductible than traditional plans. This might sound challenging, but having an HDHP can lead to other benefits too!