Any adult can contribute to an HSA if they:
- Have coverage under an HSA-qualified “high deductible health plan” (HDHP)
- Have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or long-term care insurance are permitted).
- Are not enrolled in Medicare.
- Cannot be claimed as a dependent on someone else’s tax return.
Contributions to HSAs can be made by individuals, employers, or both. However, the total contributions are limited annually. If
individuals make a contribution, they can deduct the contributions (even if
deductions are not itemized) when completing their federal income tax return.
Contributions to the account must stop once enrolled in Medicare. However,
money may be kept in the account and used to pay for medical expenses tax-free.
Next: High Deductible Health Plans (HDHPs)
Previous: Overview
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