Who is Eligible for an HSA in 2018?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while also saving for the future. But who exactly is eligible to open and contribute to an HSA in 2018?

To be eligible for an HSA in 2018, you must meet the following criteria:

• Be covered by a High Deductible Health Plan (HDHP)
• Not be covered by other health insurance that is not an HDHP
• Not be enrolled in Medicare
• Not be claimed as a dependent on someone else's tax return

Additionally, you must meet the following requirements:

• Have a minimum annual deductible set by the IRS
• Have a maximum annual out-of-pocket limit set by the IRS
• Only use the funds in the HSA for qualified medical expenses

Here are some key points to remember about HSA eligibility in 2018:

• Individuals can contribute up to a certain limit set by the IRS each year
• Employers can also contribute to an employee's HSA
• HSAs offer triple tax benefits: contributions are tax-deductible, funds grow tax-free, and withdrawals for qualified medical expenses are tax-free
• Any unused funds in the HSA roll over year after year, so you never lose your savings

Health Savings Accounts (HSAs) continue to be a fantastic option for individuals looking to save money for healthcare expenses, especially in 2018. If you want to know if you qualify for an HSA, there are specific criteria you must meet.

First and foremost, to be eligible, you need to be enrolled in a High Deductible Health Plan (HDHP). This is crucial, as it allows you to take advantage of the many benefits HSAs offer.

• Make sure you are not enrolled in any other health insurance that does not classify as an HDHP.
• You cannot be enrolled in Medicare.
• Finally, you should not be claimed as a dependent on someone else's tax return, as this would also disqualify you.

In addition to these basic requirements, the IRS mandates that you have a minimum annual deductible for your HDHP and a maximum annual out-of-pocket limit.

Here’s something to consider: HSAs provide individuals with the ability to contribute a certain amount set by the IRS each year, and contributions made by employers can also boost your savings!

One of the most attractive features of HSAs is the triple tax benefit—they're tax-deductible when you contribute, the funds grow tax-free, and you can withdraw money for qualified medical expenses tax-free.

What’s more, any money you don’t spend in your HSA rolls over into the next year, giving you extra peace of mind for future healthcare costs.