Health Savings Accounts

Who Can Establish an HSA?

For 2020, the IRS defines a high deductible health plan as any plan with a deductible of at least $1,400 for an individual or $2,800 for a family. An HDHP’s total yearly out-of-pocket expenses (including deductibles, copayments, and coinsurance) can’t be more than $6,900 for an individual or $13,800 for a family. (This limit doesn't apply to out-of-network services.). The annual “catch-up” contribution amount for individuals age 55 or older will remain $1,000. These amounts are indexed annually for inflation. To qualify as an HDHP, no payment can be made from a family coverage plan for an individual (except for preventative care benefits to which a deductible does not need to apply) until the family deductible is met.

 You generally will not be eligible to open an HSA, even if you are covered under an HDHP, if any of the following apply:

  • You are already covered under a non-HDHP, including a comprehensive major medical plan, a plan sponsored by your employer or your spouse's employer, or a prescription drug plan with a low deductible or no deductible. However, depending on the type of non-HDHP coverage you have, you still may be eligible to establish an HSA. For example, if you are covered by a non-HDHP that provides insurance for a specific disease or illness, you may still be eligible for an HSA.
  • You can be claimed as a dependent on another person's income tax return.
  • You are entitled to Medicare coverage (i.e., you are age 65 or older), and have enrolled in Medicare.
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