To be eligible to contribute to a Health Savings Account, you must be enrolled in an HSA-qualified High Deductible Health Plan (HDHP).
In addition to being enrolled in a HSA-qualified HDHP, further eligibility requirements include:
- You are not covered by any other non-HDHP health plan, such as a spouse’s plan, that provides any benefits covered by your HDHP plan. Exceptions include permissible coverage, such as specific injury insurance or accident, disability, dental, vision or long-term care insurance;
- You are not enrolled in Medicare;
- You can’t be claimed as a dependent on another person’s tax return; and
- You are not covered by a general purpose 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.
Furthermore, you only become eligible for contributions to be made to your account on the first day of the month after your HDHP coverage begins.
The Health Savings Account can be used to pay for eligible medical expenses for yourself, your spouse, your children or other tax dependents. If you are paying expenses for a family member, he or she does not have to be covered under the HDHP plan, as long as the expense is not reimbursed by other insurance and the individual is not being claimed as a tax dependent by someone else.
To review IRS guidelines (2015), please see IRS Form 969 here.