You must have a high-deductible health plan to open an HSA

An HSA is only available to people enrolled in a high-deductible health plan (HDHP). Your health insurance must meet the IRS minimum deductible — $1,600 for individual coverage or $3,200 for family coverage in 2024, though these amounts change yearly. If your plan's deductible is lower than these thresholds, you cannot open an HSA, even if you want to.

Your plan also cannot cover certain preventive services before you meet the deductible. Most HDHPs do cover preventive care like vaccines and screenings without requiring you to pay the full deductible first, which is allowed. But if your plan covers other medical services before the deductible is met, it may not may have access to as an HDHP.

You can verify whether your current plan qualifies by checking your plan documents or calling your insurance company directly. They can tell you the exact deductible amount and whether it meets IRS standards for HSA may be able to access.

Key Takeaways

  • You must be enrolled in a high-deductible health plan with a deductible of at least $1,600 (individual) or $3,200 (family) to open an HSA.
  • You cannot be covered by Medicare, Medicaid, TRICARE, or the Veterans Administration at the same time you contribute to an HSA.
  • You cannot claim anyone else as a dependent on your tax return if you want to use an HSA, with limited exceptions for spouses.
  • Self-employed people and employees at companies of any size can open an HSA if they meet the HDHP requirement.
  • You must be a U.S. citizen or resident alien with a valid Social Security number to open an HSA.

You cannot have other health coverage at the same time

If you are enrolled in Medicare, you cannot contribute to an HSA, though you can withdraw money you saved in previous years. The same rule applies if you are covered by Medicaid, TRICARE (military health coverage), or Veterans Administration benefits. These programs are considered disqualifying coverage because they overlap with what an HSA is designed to cover.

You also cannot contribute to an HSA if someone else claims you as a dependent on their tax return — with one exception. If you are married and file taxes jointly with your spouse, you can both contribute to HSAs even though one spouse may claim the other as a dependent on a joint return. But if your parent or anyone else claims you as a dependent, you are ineligible.

Spouse coverage is the only dependent relationship that does not disqualify you. Children, parents, and other relatives claiming you as a dependent will make you ineligible to contribute.

Age and citizenship requirements

You must be under age 65 to contribute to an HSA. Once you turn 65, you can no longer make new contributions, though you can continue to withdraw money from the account for any reason without penalty (though non-medical withdrawals are taxed as income). If you enroll in Medicare before age 65, you become ineligible to contribute at that point.

You must be a U.S. citizen or resident alien with a valid Social Security number. Resident aliens need an Individual Taxpayer Identification Number (ITIN) if they do not have a Social Security number, though some financial institutions may have additional requirements. Non-citizens without resident alien status cannot open an HSA.

Self-employed and employee may be able to access

Your employment status does not affect HSA may be able to access. Self-employed people, freelancers, gig workers, and employees at companies of any size can all open an HSA as long as they are enrolled in a may have access to HDHP. You do not need to work for a large employer or have employer coverage — you can purchase an HDHP on the individual market and open an HSA on your own.

If your employer offers an HDHP, you can enroll in it and open an HSA through your employer's plan administrator, or you can open one independently at a bank or financial institution. Some employers offer HSA accounts as part of their benefits package, but you are not required to use your employer's account — you can open one elsewhere if you prefer.

What disqualifies you from opening an HSA

Beyond the coverage and age restrictions, a few other situations make you ineligible. If you are claimed as a dependent by anyone other than a spouse on a joint return, you cannot contribute. If you have coverage under a health plan with a deductible below the IRS minimum, you cannot open an HSA. If you are enrolled in any form of government health coverage except for certain limited plans, you are disqualified.

Some employer plans offer both an HDHP and a non-HDHP option. If you are enrolled in the non-HDHP option, you cannot contribute to an HSA. You must be actively enrolled in the HDHP itself to be may be able to access.

How to confirm your may be able to access

Start by reviewing your health insurance plan documents or calling your insurance company to confirm your deductible amount and whether it qualifies as an HDHP. Write down the exact deductible and ask whether the plan meets IRS standards for HSA may be able to access — they should be able to answer this directly.

Next, verify that you do not have disqualifying coverage. Check whether you are enrolled in Medicare, Medicaid, TRICARE, or VA benefits. Confirm that no one is claiming you as a dependent on their tax return (except a spouse filing jointly). Verify your age is under 65.

Once you have confirmed these points, you can open an HSA at a bank, credit union, or financial institution that offers them. You will need your Social Security number, proof of HDHP enrollment, and basic identification. Some employers handle HSA setup through payroll, while others require you to open an account independently.

Frequently Asked Questions

Can I open an HSA if my employer does not offer one?

Yes. You can purchase an HDHP on the individual market through your state's health insurance marketplace or directly from an insurance company, then open an HSA at any bank or financial institution that offers them. You do not need employer involvement to be may be able to access.

What happens to my HSA if I lose my HDHP coverage?

You can keep the money in your HSA and continue to withdraw it for medical expenses. You cannot make new contributions once you are no longer enrolled in an HDHP, but the account itself remains yours. If you later re-enroll in an HDHP, you can resume contributions.

Can I have an HSA if I am on my spouse's health plan?

Yes, if your spouse's plan is an HDHP and you file taxes jointly. You can each contribute to your own HSA up to the family coverage limit. If you file separately, different rules apply — contact the IRS or a tax professional for your specific situation.

Does being self-employed affect HSA may be able to access?

No. Self-employed people are may be able to access for HSAs as long as they are enrolled in a may have access to HDHP. You can purchase an HDHP on the individual market and open an HSA independently, or through a professional association or group plan if available in your area.

What if I turn 65 mid-year?

You can contribute to your HSA for the months before you turn 65. Once you enroll in Medicare or reach 65, you stop being may be able to access to contribute. You can still withdraw money from the account for medical expenses without penalty after 65, though non-medical withdrawals become taxable.