Savings today.

Investment for tomorrow.

That’s the power of a health savings account (HSA).

See who’s eligible to have HSAs, how much you can contribute, what you can pay for, and more.

To be eligible to open an HSA, you need to:

HSA CheckMark Be covered by an HSA-eligible high deductible health plan (HDHP)

HSA CheckMarkNot be covered by another non-eligible health plan

HSA CheckMarkNot be enrolled in Medicare

HSA CheckMarkNot be covered by an FSA (even your spouse’s)

HSA CheckMarkNot be receiving Veteran’s healthcare benefits for any non-service-connected disability

HSA CheckMarkNot be claimed as a dependent on someone else’s tax return


Find out the numbers your health plan needs to hit to be HSA-eligible.

HSA Chart

Contributions to your HSA are either tax-free or tax-deductible. Anyone can contribute to your HSA, but all combined contributions for the year can’t exceed the IRS’ annual maximum contribution limit (there’s no minimum limit).

Your contribution limit depends on whether your health coverage is Self-only (just you) or Family (you and at least one other person).

You can contribute to your HSA until that year’s federal income tax deadline (generally around April 15th of the following year). Also, it’s possible to lose HSA eligibility after you’ve opened an account, but any contributions you’ve made are always yours to use, whether you’re eligible or not.

Find out what to do if you go over the contribution limit.

HSA Glass Icons

You can use your HSA to pay for or reimburse eligible medical expenses for you, your spouse, and your tax dependents tax-free. Generally, an eligible expense is anything prescribed by a doctor for a medical condition that returns you to a normal state of health (like doctor bills, prescriptions, eyeglasses, or fillings).

See a list of common qualified medical expenses here. For a comprehensive list, see IRS Publication 502 and IRS Publication 969.

If you use your HSA to pay for non-eligible expenses, however, you must include those withdrawals as taxable income in the year you made them and pay a 20% penalty on them.


Find out what makes the 20% penalty on non-eligible expenses disappear.

Get the Ultimate Guide to HSAs


  • When you can be fully HSA-eligible and still not allowed to open an HSA
  • How to erase an excess contribution so you aren’t penalized
  • How to buy a boat (or anything else) with tax-free HSA dollars

 Email me proven HSA tips & strategies weekly.