Are You Eligible For An HSA?
To be eligible to make HSA contributions, you must be covered under an HSA-qualified consumer-driven health plan (CDHP) on the first day of that month.
An HSA-eligible consumer-driven health plan must:
- Meet the IRS’ minimum annual deductible (for 2020, this is $1,400 for self-only coverage and $2,800 for family coverage). This means that you’re responsible to pay for all medical expenses until you reach your deductible; your insurance cannot cover any of these costs. If your family coverage has an embedded deductible, make sure it’s higher than $2,800.
- Not exceed the IRS’s maximum out-of-pocket threshold (the most you’re responsible for paying in a given year). For 2020, this is $6,900 for self-only coverage and $13,800 for family coverage. Note: the out-of-pocket maximum only applies to in-network services.
HSA-qualified health plans are allowed to remove certain preventive care services (like annual physicals and immunizations) from counting towards their annual deductible, and many plans offer this benefit.
Are you eligible for an HSA?
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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 currently or in the past 90 days 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 to make HSA contributions. If your health coverage began on the first of the month, you’re immediately eligible to contribute to your HSA; otherwise, you have to wait until the first day of the following month.
Frequently asked questions
Federal regulations require you to meet these eligibility requirements in order to contribute to an HSA.
You must be:
- Covered under a qualified consumer-driven health plan (CDHP) 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