Who is Eligible for an HSA? Exploring the Basics of Health Savings Accounts

Health Savings Accounts (HSAs) are a valuable financial tool that can help individuals save money for medical expenses while also providing tax benefits. But who exactly is eligible for an HSA?

Eligibility for an HSA is based on several key factors:

• The individual must be covered by a High Deductible Health Plan (HDHP)
• The individual cannot be claimed as a dependent on someone else's tax return
• The individual cannot be enrolled in Medicare
• The individual cannot be covered by another non-HDHP health plan

Furthermore, there are specific requirements regarding the HDHP coverage:

• The plan must have a minimum deductible amount set by the IRS
• The plan must have a maximum out-of-pocket limit also set by the IRS

It's important for individuals to understand these eligibility criteria before opening an HSA to ensure they can fully utilize its benefits.

Health Savings Accounts (HSAs) are designed to empower individuals to save for medical expenses, and understanding eligibility can make all the difference. To qualify for an HSA, one must be enrolled in a High Deductible Health Plan (HDHP), which means the individual takes responsibility for a higher out-of-pocket deductible.