Who is eligible to contribute to an HSA?
In order to make contributions to an HSA, you must meet the following criteria:
- You have coverage under an HSA-compatible, qualified high deductible health plan.
- You are not covered under any type of non-permitted health coverage.
- You are not enrolled in Medicare, Medicaid or Tricare.
- You are not covered by a first-dollar, general purpose Medical Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA).
- Other than being someone’s spouse, you are not claimed as another individual’s tax dependent.
- You have not received benefits (other than preventive care or care for a service-related disability) from a VA facility in the past 3 months.
What is “non-permitted” health coverage?
Under federal regulations, “non-permitted” health coverage includes the following:
- A health plan that is not an HSA compatible, qualified high deductible health plan.
- A general purpose Medical FSA (you must have a zero balance in your account on the last day of the plan year in order to be HSA eligible on the first day of the subsequent plan year).
- An HRA that reimburses your expenses prior to you or your family incurring the minimum annual statutory deductible (currently $1,350 single and $2,700 family).
What type of coverage is permitted in conjunction with an HSA?
You may have coverage under the following types of plans and still maintain HSA eligibility:
- Preventive care ;
- Dental and/or Vision;
- A Limited Purpose Medical FSA;
- An HRA that reimburses your expenses after you and your family have incurred the minimum annual statutory deductible amount (currently $1,350 single and $2,700 family); and
- Dollar-per-day benefits for specific medical conditions, accidents or hospital stays.
What happens to my HSA if I leave my current employer?
Your HSA belongs to you regardless of if/where you work. You may continue to contribute to it if you remain eligible (see questions above), save it for future expenses or reimburse yourself for ongoing qualified medical expenses.