According to the IRS, "A Health Savings Account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to qualify for an HSA."
Who is a qualifying individual?
To be eligible for an HSA account:
- You must be covered under a High Deductible Health Plan (HDHP) on the first day of the month
- You are not enrolled in Medicare
- You have no other health coverage except what is permitted
- You cannot be claimed as a dependent on another person's 2020 tax return