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February 28, 2009

Who is eligible for a Health Savings Account


Who is eligible for a Health Savings Account

Who is eligible for a Health Savings Account?

To be eligible for a Health Savings Account, an individual must be covered by a HSA-qualified High Deductible Health Plan (HDHP) and must not be covered by other health insurance that is not an HDHP.  Certain types of insurance are not considered “health insurance” and will not jeopardize an individual’s eligibility for an HSA. In general,  the term “eligible individual” means, with respect to any month, any individual if —

  • such individual is covered under a high deductible health plan as of the 1st day of such month, and
  • such individual is not, while covered under a high deductible health plan, covered under any health plan
      • which is not a high deductible health plan, and
      • which provides coverage for any benefit which is covered under the high deductible health plan.

The HDHP policy does not have to be in the HSA owner’s name,. As long as the individual has  coverage under the HDHP policy, he/she can be eligible for an HSA,  assuming the other eligibility requirements for contributing to an HSA are satisfied. An individual can still be eligible for an HSA even if the policy is in the name of the individual’s spouse.


Written By

Denise Appleby

Denise is CEO of Appleby Retirement Consulting Inc., a firm that provides IRA resources for financial/ tax/legal professionals. She has over 20 years of experience in the retirement plans field, which includes training and technical consultation.

Denise writes and publishes educational /marketing tools for advisors; available at Denise co-authored several books on IRAs

Denise is a graduate of The John Marshall Law School, where she obtained a Masters of Jurisprudence in Employee Benefits, and has earned 5 professional retirement designations.
She has appeared on numerous media programs, sharing her insights on retirement tax laws.


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