Employees who participate in a qualified HDHP and do not have other coverage are generally eligible to contribute to an HSA.
An HSA allows you to set aside money pre-tax to help pay for eligible medical expenses. Your contributions can build year over year and any interest you earn will grow tax-free.
According to the IRS, to be eligible to contribute to an HSA you must meet the following requirements:
- You are covered under a qualified high-deductible health plan;
- Are not covered by another non-HSA eligible health plan, including an FSA;
- Are not enrolled in Medicare or Tricare; and
- Are not being claimed as a dependent on someone else's tax return
The IRS sets annual contribution limits for each calendar year.
2023 Calendar Year HSA Contribution Limits:
Self-only HDHP coverage: $3,850
Family HDHP coverage: $7,750
Individuals 55 and over may contribute an extra $1,000 for catch-up contributions.
2024 Calendar Year HSA Contribution Limits:
Self-only HDHP coverage: $4,150
Family HDHP coverage: $8,300
Individuals 55 and over may contribute an extra $1,000 for catch-up contributions.
See IRS Publication 969 for rules regarding eligibility, contributions, and distributions.
Find out more HERE.
To enroll in an HSA, visit the American Fidelity enrollment site HERE.