Who Qualifies for a Health Savings Account (HSA)?

To contribute to a Health Savings Account (HSA), you must be an eligible individual under IRS rules. HSAs are available to people who are covered by a qualifying High Deductible Health Plan (HDHP) and meet certain additional requirements.

HSA Eligibility Requirements

You qualify for an HSA if all of the following are true:

• You are covered by a qualifying High Deductible Health Plan (HDHP) on the first day of the month.
• You do not have other health coverage that is not permitted by IRS rules (see below).
• You are not enrolled in Medicare.
• You cannot be claimed as a dependent on someone else's tax return.

If you fail to meet any of these requirements, you generally cannot make or receive HSA contributions for that month.

What Is a High Deductible Health Plan (HDHP)?

A High Deductible Health Plan is a health insurance plan that meets IRS requirements for deductibles and out-of-pocket costs.

An HDHP must have:

• A higher annual deductible than many traditional health plans, and
• A limit on the total amount you pay each year for covered medical expenses. This includes deductibles, copayments, and other out-of-pocket costs, but not insurance premiums.

An HDHP may also provide preventive care benefits before you meet the deductible.

Can I Have Other Health Coverage?

Generally, you cannot have other health coverage that would pay for medical expenses before you meet your HDHP deductible.

However, you may still qualify for an HSA if:

• Your spouse has non-HDHP coverage, but you are not covered under that plan.
• You only have coverage that is specifically allowed by the IRS, such as certain supplemental insurance policies.

See also: What if we have both a family plan and a self-only plan?

What Additional Insurance Is Allowed?

You can still be HSA-eligible if you have insurance that only provides benefits for:

• Workers' compensation claims
• Tort or liability claims
• Property-related liability claims
• A specific illness or disease
• A fixed amount per day (or other period) of hospitalization

What Other Types of Coverage Can I Have?

You may also have separate coverage for the following without affecting your HSA eligibility:

1. Accident coverage
2. Disability insurance
3. Dental coverage
4. Vision coverage
5. Long-term care coverage
6. Telehealth and other remote care services (when permitted under applicable federal rules)

These types of coverage are considered limited-purpose or supplemental benefits and generally do not disqualify you from contributing to an HSA.

Important Note About Specialized Plans

A plan is not considered an HDHP if substantially all of its coverage is limited to one of the supplemental benefits listed above.

For example, a plan that primarily covers only a specific disease or illness does not qualify as an HDHP for HSA purposes.

Additional Information

For more details, see IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans, which explains HSA eligibility, contribution limits, qualified medical expenses, and distribution rules.