You must meet several IRS eligibility requirements to establish and contribute to an HSA. It is your responsibility to determine if you are eligible. For better understanding of the HSA eligibility rules, review IRS Publication 969. Some of those include:
- You must be enrolled in an HSA-eligible health plan on the first day of the month, such as a High-Deductible Health Plan (HDHP).
- If you also have coverage under a plan that is not HSA-eligible (such as a spouse's or parent's plan), you may not enroll in an HSA.
- You cannot currently be enrolled in Medicare.
- You cannot be claimed as a dependent on another person’s tax return.
Do one of the following scenarios apply to you?
I'm enrolled in an HDHP, but I'm not putting money into an HSA.
You are eligible to save money in a Health FSA, which you can learn more about here.
I'm enrolled in an HDHP, and I am putting money into an HSA.
You can also contribute to a Limited Use Health FSA. These accounts can only be used for vision and dental expenses.
I contributed to an HSA but don't qualify to do so.
You may be subject to additional taxes and penalties.
My spouse has an FSA.
You are ineligible to participate in an HSA.