To qualify for a Health Savings Account (HSA), you need to meet four requirements: you’re covered by a high-deductible health plan (HDHP), you have no other disqualifying health coverage, you’re not enrolled in Medicare, and no one claims you as a dependent on their tax return. All four must be true at the same time. Here’s how to check each one.
Your Health Plan Must Be High-Deductible
The most important qualification is your health insurance plan. It has to meet the IRS definition of a high-deductible health plan, which is based on specific dollar thresholds that change each year. For 2025, your plan qualifies as an HDHP if the annual deductible is at least $1,650 for self-only coverage or $3,300 for family coverage. Your plan also can’t exceed certain out-of-pocket maximums: $8,300 for self-only coverage or $16,600 for family coverage. Out-of-pocket expenses include deductibles and copayments but not premiums.
If you get insurance through your employer, the plan documents or benefits summary will usually say whether it’s HSA-eligible. Many employers label these plans clearly during open enrollment. If you buy insurance on the marketplace or directly from an insurer, look for the HDHP or “HSA-compatible” label, or compare your deductible and out-of-pocket max against the thresholds above.
No Other Disqualifying Health Coverage
Even with an HDHP, you lose HSA eligibility if you also have other health coverage that pays benefits before you meet your deductible. This includes a spouse’s non-HDHP plan that covers you, a general-purpose health care flexible spending account (FSA), or a health reimbursement arrangement (HRA) that reimburses medical expenses before your deductible is met.
There are some important exceptions. You can pair an HSA with a “limited-purpose” FSA (sometimes called an HSA-compatible FSA), which only covers dental and vision expenses until you hit your deductible. You can also use an HRA alongside an HSA if you opt out of having the HRA reimburse general medical expenses. Coverage that only provides dental, vision, disability, or long-term care benefits doesn’t disqualify you either.
You Can’t Be on Medicare
Once you enroll in any part of Medicare, including Part A, you can no longer contribute to an HSA. This is especially important for people turning 65, because if you’re receiving Social Security benefits, you may be automatically enrolled in Medicare Part A. There’s also a retroactive enrollment issue: Medicare Part A coverage can be backdated up to six months, which means some people need to stop HSA contributions before they technically “start” Medicare to avoid tax penalties.
You can still spend money already in your HSA after enrolling in Medicare. You just can’t put new money in. If you’re approaching 65 and want to keep contributing, it’s worth planning your Medicare enrollment timing carefully.
You Can’t Be Claimed as a Dependent
If someone else claims you as a dependent on their tax return, you can’t contribute to your own HSA. This most commonly affects young adults who are on a parent’s HDHP. You might be covered under a qualifying high-deductible plan, but if your parents claim you as a dependent, you’re not eligible to open or fund your own account. Once you file independently and no one claims you, this restriction lifts.
How Much You Can Contribute
Once you confirm you qualify, the contribution limits for 2025 are $4,300 for self-only HDHP coverage and $8,550 for family HDHP coverage. These limits include any contributions your employer makes on your behalf.
If you’re 55 or older by the end of the tax year, you can add an extra $1,000 as a catch-up contribution. If both you and your spouse are 55 or older and each have your own HSA, you can each make the $1,000 catch-up contribution, but each person adds it to their own separate account.
What If You Become Eligible Mid-Year
If you switch to an HDHP partway through the year, such as during a job change or open enrollment, you generally contribute a prorated amount based on how many months you were eligible. For example, if you become eligible on July 1, you’d contribute roughly half the annual limit.
There’s an alternative called the “last-month rule.” If you’re HSA-eligible on December 1 of the tax year, you can contribute the full annual amount as if you’d been eligible all year. The catch is a testing period: you must remain HSA-eligible through December 31 of the following year. If you lose eligibility during that testing period (by switching to a non-HDHP or enrolling in Medicare, for example), the excess contribution becomes taxable income and you’ll owe a 10% penalty on it.
Special Rules for Veterans
Receiving medical care through the VA can affect your HSA eligibility. Veterans who don’t have a service-connected disability and receive care through the VA must wait three months after their last VA health service before they can contribute to an HSA again. If you have a service-connected disability, VA care for that specific condition generally doesn’t disqualify you. This is one of the trickier eligibility scenarios, so it’s worth checking your specific situation if you use both VA care and a private HDHP.
A Quick Way to Check
Run through these four questions:
- Is your health plan an HDHP? Check that the deductible meets the IRS minimum ($1,650 individual / $3,300 family for 2025) and the out-of-pocket max doesn’t exceed the IRS ceiling.
- Do you have other health coverage? A spouse’s general plan covering you, a regular FSA, or a general-purpose HRA all disqualify you. Limited-purpose FSAs and standalone dental or vision plans are fine.
- Are you enrolled in Medicare? Any part, including Part A, ends your contribution eligibility.
- Are you someone’s tax dependent? If yes, you can’t contribute to an HSA even if you’re on a qualifying plan.
If you answer yes to the first question and no to the other three, you qualify. The money you put into an HSA is tax-deductible, grows tax-free, and comes out tax-free when used for qualified medical expenses, making it one of the most tax-advantaged accounts available.