Who is eligible to contribute to a Health Savings Account (HSA)?

If you are enrolled in a Qualified High-Deductible Health Plan (QHDHP), you are eligible to open an HSA. As defined by the Internal Revenue Code, QHDHPs have higher annual deductibles than typical health plans, so HSAs are tax-favored savings vehicles that allow you to save money for possible future expenses that are subject to a higher deductible.

These accounts also have maximum contribution limits that correspond to the annual deductible dollar limit for QHDHPs (as revised annually by the IRS).

Members enrolled in a QHDHP are not eligible to open an HSA if:

  • They are covered by any health plan other than a QHDHP (such as a PPO, HMO, or health care FSA). Stand-alone dental and vision plans are not included in this restriction.
  • They are enrolled in Medicare
  • They are claimed as a dependent on another individual's tax return
  • Their identity cannot be verified by the bank (as custodian of the HSA)

Note: Federal regulations require that HSA custodian banks complete security checks to verify every new account holder's name, residential mailing address, date of birth and social security number. Some banks require that new account holders have a valid U.S. residential address and Social Security Number to open an HSA. If the bank has any questions, it will send a letter to the prospective account holder and ask for information to verify their status. The account holder must confirm his or her status as a U.S. citizen, green card holder or U.S. resident with a valid U.S. residential address. If the security check cannot be completed satisfactorily, the bank will not open an HSA for this person.

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