Any eligible individual that:
- Is covered by an HSA-compatible health plan
- Is not covered by other health insurance (except certain types of limited coverage)
- Is not enrolled in Medicare
- Is not claimed as a dependent on someone else’s tax return
- Children cannot establish an HSA
- Eligible spouses can establish their own HSA
Accountholders who meet the qualifications noted below are eligible to make an HSA catch-up contribution of $1,000.
Health Savings account holder
Age 55 or older (regardless of when in the year an account holder turns 55)
Not enrolled in Medicare (if an accountholder enrolls in Medicare mid-year, catch-up contributions should be prorated)
Your insurance company will determine if the policy is an HSA-compatible health plan.
Contributions can come from employers, the accountholder, or third parties. The combined contribution amount is subject to the IRS contribution limits.
There are no income restrictions for opening or contributing to an HSA.
HSA funds roll over year-to-year. There are tax benefits on contributions, earnings and distributions, and long-term investment opportunities are available.
This is permitted if the combination is:
“Limited purpose” flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs) that restrict reimbursements to certain permitted benefits such as vision, dental, or preventive care benefits.
“Post-deductible” FSA or HRAs that only provide reimbursement after the minimum annual deductible has been satisfied under the HDHP.
The funds can go with you to your new job.
Yes, though the withdrawal may be subject to income tax and penalties. After age of 65, you can use the funds for non-qualified expenses without penalty, though the funds may be subject to income tax.