In order to be eligible to make contributions to a Health Savings Account, you must be covered under a HSA-qualified consumer driven health plan (CDHP) on the first day of that month.
A HSA-eligible consumer-driven health plan must:
- Meet the IRS minimum annual deductible (for 2020, this is $1,400 for individual coverage and $2,800 for family coverage). This means that you’re responsible to pay for all medical expenses until you reach your deductible; your insurance cannot cover any of these costs.
- Not exceed the IRS’s maximum out-of-pocket threshold (which means the most you as the insured party are responsible for paying in a given year). For 2020, this is $6,900 for self-only coverage and $13,800 for family coverage.
Additionally, the following items would disqualify you from a HSA
- Covered by any other health plan, including your spouse's health insurance
- Covered by your own or spouse’s medical flexible spending account (FSA)
- Enrolled in any part of Medicare or Tricare
- Receiving Veteran’s health benefits now or in the past 90 days for a non-service connected disability
- Claimed as a dependent on another person’s tax return.
If you would like to open a Health Savings Account with Whitaker-Myers Wealth Managers, you can do so online, here.
If you still have questions about if you qualify, contact us and we would be happy to help!