The Basic Requirements for an HSA

To open an HSA, you must be enrolled in a high-deductible health plan (HDHP) — a specific type of health insurance with a deductible of at least $1,600 for individual coverage or $3,200 for family coverage in 2024. The deductible amount changes each year, so check your plan documents or your insurer's website to confirm the current threshold. You cannot have an HSA if you are on Medicare, covered by a spouse's non-HDHP plan, or claimed as a dependent on someone else's tax return.

Your HDHP must meet additional requirements set by the IRS: it cannot cover most preventive care before you meet your deductible, and it must have an out-of-pocket maximum (the most you pay in a year before insurance covers everything). If your plan meets these standards, your insurer will tell you so explicitly — they market HDHPs as HSA-may be able to access plans. If you are unsure whether your current plan qualifies, call your insurer's customer service line and ask directly: "Is this plan HSA-may be able to access?"

You must also be a U.S. citizen or resident alien with a valid Social Security number. Non-citizens and undocumented immigrants cannot open HSAs, even if they have an HDHP.

Key Takeaways

  • You must be enrolled in an HDHP with a deductible of at least $1,600 (individual) or $3,200 (family) — your insurer will label it as HSA-may be able to access if it qualifies.
  • You cannot have an HSA if you are on Medicare, covered by a non-HDHP through a spouse, or claimed as a dependent on someone else's taxes.
  • You must be a U.S. citizen or resident alien with a Social Security number.
  • You can open an HSA through your employer's plan, a bank, or an insurance broker — the account is yours to keep even if you change jobs or insurance.
  • Part-time workers, self-employed people, and retirees under 65 can all open HSAs if they meet the HDHP requirement.

Who Cannot Open an HSA

Medicare enrollment disqualifies you immediately. Once you turn 65 and enroll in Medicare Part A or Part B, you can no longer contribute to an HSA, even if you also have an HDHP. If you are already contributing to an HSA and then enroll in Medicare, you must stop contributions that month. You can still withdraw money from your existing HSA for medical expenses, but you cannot add new funds.

If your spouse has a non-HDHP plan and you are covered under that plan, you cannot open an HSA — even if you also have your own HDHP. This rule applies to family coverage: if any member of your household is covered by a non-HDHP, no one in that household can use an HSA. The exception is if you have individual coverage under an HDHP separate from your spouse's plan; in that case, only you can open an HSA, not your spouse.

Being claimed as a dependent on someone else's tax return also blocks HSA access. This affects adult children, elderly parents, and other dependents — if someone else claims you on their taxes, you cannot open an HSA that year, even if you have your own HDHP and income.

Employment Status Does Not Matter

You do not have to work full-time to open an HSA. Part-time employees, gig workers, and self-employed people can all open accounts if they have an HDHP. The only requirement is that you are enrolled in a may have access to plan and meet the other may be able to access rules.

If you work for an employer that offers an HDHP, you can open an HSA through their plan administrator — this is often the easiest route because your employer may contribute money to your account or allow you to contribute pre-tax through payroll deduction. If your employer does not offer an HDHP, or if you are self-employed, you can open an HSA independently through a bank, credit union, or insurance broker that offers HSA accounts.

Self-employed people and gig workers can deduct HSA contributions on their tax return, which lowers their taxable income. You will need to report the account on your tax return, but the process is straightforward and covered in the IRS instructions for Form 1040.

Age Limits and Special Cases

There is no minimum age to open an HSA — a child can have one if they are enrolled in an HDHP and their parent or guardian opens the account on their behalf. There is also no maximum age before 65; you can open an HSA at any age as long as you are not yet on Medicare.

If you turn 65 during the year, you can contribute to your HSA only for the months before you enroll in Medicare. For example, if you turn 65 in July and enroll in Medicare that month, you can contribute for January through June. After enrollment, contributions stop, but you can still withdraw money for medical expenses for the rest of your life.

Retirees under 65 who have an HDHP can continue to open and contribute to an HSA. This is common for people who retire early and buy individual health insurance on the marketplace — if they choose an HDHP, they can open an HSA and use it to pay for medical costs during the years before Medicare begins.

How to Confirm Your Plan Is HSA-may be able to access

The simplest way to check is to contact your health insurer directly. Call the customer service number on your insurance card and ask: "Is my plan HSA-may be able to access?" They will give you a yes or no answer. If yes, ask them to confirm the deductible amount and out-of-pocket maximum so you have the numbers in writing.

You can also check your plan documents — the Summary of Benefits and Coverage (SBC) or the plan's full description. These documents will state whether the plan is HSA-may be able to access. If you bought insurance through your state's marketplace or the federal marketplace (Healthcare.gov), you can log into your account and filter plans by HSA may be able to access.

If you are unsure whether you meet the other requirements — Medicare status, dependent status, or citizenship — review those sections above or contact the IRS directly. The IRS Publication 969 covers HSA rules in detail and is available free on the IRS website.

Opening an HSA Once You Confirm may be able to access

If your employer offers an HDHP with an HSA, you typically enroll during open enrollment or when you first become may be able to access for the plan. Your employer will direct you to the HSA administrator (often a bank or third-party administrator) where you complete a brief enrollment form. This usually takes 10 to 15 minutes online.

If you are self-employed or your employer does not offer an HSA, you can open one independently through a bank, credit union, or brokerage firm. Search online for "HSA accounts" or "open an HSA" and compare providers based on fees, investment options, and customer service. Some banks offer HSAs with no monthly fees; others charge $2 to $5 per month. Once you choose a provider, you will fill out an application online or in person, provide your Social Security number, and confirm your HDHP enrollment. The account typically opens within one to three business days.

Frequently Asked Questions

Can I open an HSA if I have a high-deductible plan through my spouse's employer?

Only if you are not covered under your spouse's plan. If you are covered as a spouse or dependent on their HDHP, you can open an HSA together as a family account. If your spouse has an HDHP but you have separate individual coverage under a non-HDHP, you cannot open an HSA. The rule depends on whose plan you are actually enrolled in, not whose employer offers it.

What happens to my HSA if I leave my job?

Your HSA stays with you. The account is yours, not your employer's. When you leave your job, you can keep the HSA open at the same provider, move it to a different bank or brokerage, or roll it into a new HSA at your next employer's plan. You can also keep contributing to it if you have an individual HDHP, even if you are unemployed or self-employed.

Can I open an HSA if I am on Medicaid?

Not if Medicaid is your primary insurance. Medicaid is not an HDHP, so you do not meet the enrollment requirement. However, if you have both Medicaid and an HDHP as secondary coverage, some states allow HSA contributions — check with your state's Medicaid program and your HDHP insurer to confirm.

Do I have to use my HSA in the same year I contribute to it?

No. HSA money rolls over year to year with no limit. You can contribute in 2024 and spend the money in 2030 if you choose. This is one of the main advantages of an HSA — it is a long-term savings tool, not a use-it-or-lose-it account.

Can a student open an HSA?

Yes, if they are enrolled in an HDHP and meet the other requirements. Many students buy individual health insurance on the marketplace and choose an HDHP to lower their monthly premium. If they do, they can open an HSA. However, if they are claimed as a dependent on their parent's tax return, they cannot open an HSA that year.