Who is Eligible for HSA? | Understanding HSA Eligibility Criteria

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare costs while saving for the future. One of the key questions people have when considering an HSA is who is eligible to open and contribute to one.

The eligibility criteria for HSA include:

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

Individuals who meet these criteria can open an HSA and contribute funds to it tax-free for qualified medical expenses.

Health Savings Accounts (HSAs) are fantastic tools designed to help individuals take control of their healthcare expenses while also planning for future medical costs. To open and contribute to an HSA, certain eligibility criteria must be met, which include:

• Being enrolled in a High Deductible Health Plan (HDHP) is essential.
• You cannot be claimed as a dependent on someone else's tax return.
• Having no other non-HDHP health coverage is crucial.
• Those enrolled in Medicare are not eligible to contribute.

If you meet these parameters, you can open an HSA and benefit from tax-free contributions and withdrawals for qualifying medical expenditures.