Are You Eligible For An HSA?

To be eligible to open an HSA, you must be covered under an HSA-qualified high-deductible health plan (HDHP) on the first day of that month.

An HSA-eligible high-deductible health plan must:

  • Meet the IRS’ minimum annual deductible (for 2018, this is $1,350 for self-only coverage and $2,700 for family coverage). If your family coverage has an embedded deductible, make sure it’s higher than $2,700.
  • Not exceed the IRS’s maximum out-of-pocket threshold (the most you’re responsible for paying in a given year). For 2018, this is $6,650 for self-only coverage and $13,300 for family coverage. Note: the out-of-pocket maximum only applies to in-network services.
  • Not pay for any non-preventive services until the annual deductible is reached. (Routine well visits, regular dental cleanings, and prenatal care are considered preventive services.)

If your qualified coverage begins in the middle of a month, you’ll have to wait until the first day of the next month to open an HSA.

Who Is Eligible For An HSA?

Federal regulations require you to meet these eligibility requirements in order to open and contribute to an HSA.

You must be:

  • Covered under a qualified high deductible health plan (HDHP) on the first day of the month

You must not be:

  • Covered by any other health plan, including your spouse’s health insurance
  • Covered by your own or spouse’s medical flexible spending account (FSA)
  • Enrolled in any part of Medicare or Tricare
  • Receiving Veteran’s health benefits now or in the past 90 days for a non-service connected disability
  • Claimed as a dependent on another person’s tax return

If you’re covered by a qualified health plan

the next step is to make sure you’re not covered by any disqualifying plans or programs. These include:

  • Another health plan that isn’t HSA-qualified, including a spouse’s health plan or a supplemental health plan.
  • Being enrolled in Medicare, Medicaid, or Tricare. You can still be HSA-eligible if your spouse is enrolled in one of those plans.
  • Being covered by a Flexible Spending Account (FSA), either yours or your spouse’s.
  • Receiving Veteran’s healthcare benefits for any non-service-connected disability. If you are otherwise HSA-eligible, you can open an HSA on the first day of the fourth month after your treatment ends.
  • Currently being claimed as a dependent on another person’s tax return.

If none of these conditions apply to you, and you’ve verified that your health plan is HSA-qualified, then you’re eligible for an HSA.

Ready to enroll?

A health savings account (HSA) combines the immediate benefits of a flexible spending account with the retirement strategy of a 401(k) … and offers more tax advantages than either.

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