If you're eligible for an HSA, you can open one on your own or through your employer, if they offer one.
The main requirement for opening an HSA is having a qualifying high-deductible health plan that meets IRS guidelines for the annual deductible and out-of-pocket maximum.
|Individual coverage||Family coverage|
|Minimum annual deductible|
|Annual out-of-pocket maximum|
You can open and fund a health savings account (HSA) if you:
- Are covered by an HSA-qualified high-deductible health plan (HDHP) on the first day of a given month.
- Are not covered by any other non-HSA-eligible health plan (dental, vision, disability and some other types of additional coverage are permissible).
- Are not enrolled in Medicare, TRICARE or TRICARE for Life.
- Have not received Veterans Administration (VA) benefits within the past three months, except for preventive care. If you are a veteran with a disability rating from the VA, this exclusion does not apply.
- Are not eligible to be claimed as a dependent on someone else’s tax return.
- Do not have a health care flexible spending account (FSA) or health reimbursement account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.
Other restrictions and exceptions also apply. We recommend that you consult a tax, legal or financial advisor to discuss your personal circumstances.
Coverage of adult children
Health care reform legislation passed in 2010 allows adult children up to age 26 to be covered by parents’ health plans, including high-deductible plans.
The tax laws regarding HSAs have not changed, however an adult child must still be considered a tax dependent in order for an adult child’s medical expenses to qualify for payment or reimbursement from a parent’s HSA.
If you are under age 26 and covered by a parent’s HSA-eligible, high-deductible health plan, you may be able to open and fund an HSA yourself. The criteria above still apply. Consult a knowledgeable benefits consultant or tax advisor.