Who is Eligible for an HSA? - Understanding Health Savings Accounts

Many people wonder, 'Who is eligible for a Health Savings Account (HSA)?' Well, the good news is that HSAs are available to a wide range of individuals who meet certain criteria. Let's break it down:

Eligibility Criteria:

• Must be covered by a High Deductible Health Plan (HDHP)
• Cannot be enrolled in Medicare
• Cannot be claimed as a dependent on someone else's tax return
• Must not have other first-dollar coverage, such as through another health insurance plan or flexible spending account where medical expenses are reimbursed without first meeting the HDHP deductible

If you meet these criteria, congratulations! You are eligible to open and contribute to an HSA. Here are some more key points to know about HSAs:

• Contributions are tax-deductible
• Withdrawals for qualified medical expenses are tax-free
• Unused funds roll over from year to year
• HSAs are portable, meaning you can keep them even if you change jobs or health insurance plans

Health Savings Accounts (HSAs) provide an opportunity not only to save for current medical expenses but also to invest for future healthcare needs. To qualify, individuals must be health-conscious consumers covered under a High Deductible Health Plan (HDHP), making informed choices about their healthcare expenditures.