The Basic Requirements for an HSA

To open an HSA, you must be enrolled in a high-deductible health plan (HDHP) — that is the single requirement that matters most. You cannot have an HSA without one. The IRS sets the minimum deductible each year: for 2024, that is $1,600 for individual coverage and $3,200 for family coverage. Your health plan must meet or exceed those thresholds.

You also cannot be covered by any other health insurance at the same time, with narrow exceptions. If you have Medicare, Medicaid, TRICARE, or the Veterans Administration covering you, you are not may be able to access. If a spouse or parent claims you as a dependent on their taxes and covers you under their plan, you cannot open your own HSA. The rule is strict: one HSA per person, one HDHP per person, no overlap.

You must be a U.S. citizen or resident alien with a valid Social Security number or Individual Taxpayer Identification Number. Age does not matter — you can open an HSA at any age as long as you meet the other requirements.

Key Takeaways

  • You must be enrolled in a high-deductible health plan with a deductible of at least $1,600 (individual) or $3,200 (family) in 2024 to open an HSA.
  • You cannot have Medicare, Medicaid, TRICARE, VA coverage, or any other health insurance running at the same time as your HSA.
  • If someone else claims you as a dependent and covers you under their health plan, you cannot open your own HSA.
  • Your employer may offer an HSA-compatible plan, or you can find one on the individual market through your state's health insurance marketplace.
  • Once you open an HSA, you can keep it even if you change jobs or retire, as long as you stay enrolled in an HDHP.

Where Your HDHP Comes From

Most people get an HDHP through their employer. If your employer offers health insurance, they may offer one or more HDHP options alongside traditional plans. You choose it during open enrollment, usually in the fall. Your employer may contribute money to your HSA as part of the benefits package — this is common but not required.

If your employer does not offer an HDHP, or you are self-employed or unemployed, you can buy one on the individual market. Go to your state's health insurance marketplace (healthcare.gov if you do not have a state-specific site) and filter for HDHP plans. You pay the full premium yourself, though you may receive a tax credit based on your income. The plan must be certified as HDHP-compatible by the insurer — not all plans are.

If you are retired and on Medicare, you cannot use an HSA. Medicare Part A or Part B makes you ineligible the moment you enroll, even if you also have an HDHP. This is a hard boundary.

The Dependent and Family Coverage Exception

If you are claimed as a dependent on someone else's tax return, the rule depends on whether they cover you under their health plan. If they do, you cannot open your own HSA — their coverage disqualifies you. If they claim you as a dependent but do not cover you under their plan, you can open an HSA if you meet all other requirements.

This matters most for adult children. If your parent claims you as a dependent and covers you under their family HDHP, you cannot open your own HSA. If your parent claims you as a dependent but you buy your own individual HDHP, you can open one. The distinction is coverage, not the dependent status itself.

Spouses can each have their own HSA if they are both enrolled in separate HDHPs, or they can each contribute to a family HSA if they share one family HDHP. The family plan must have a deductible of at least $3,200 for both spouses to be may be able to access.

Income and Tax Filing Status

There is no income limit to open an HSA. You can earn any amount and still be may be able to access. However, your income does affect how much you can contribute each year — the IRS sets annual contribution limits, and those limits are the same regardless of income.

You must file a U.S. tax return to contribute to an HSA, even if you do not owe taxes. You report your contributions on Form 8889 when you file. If you are married, you and your spouse can each have an HSA if you both meet the requirements, and you each file your own Form 8889.

When You Lose may be able to access

You remain may be able to access as long as you stay enrolled in an HDHP and do not gain other health coverage. If you switch to a traditional health plan with a lower deductible, you lose HSA may be able to access when ready. You can still withdraw money from your existing HSA — the account does not close — but you cannot make new contributions.

If you enroll in Medicare, you become ineligible the first day of the month you turn 65, even if you do not actually use Medicare benefits. You can still use the money already in your HSA for may have access to medical expenses, but you cannot add more. If you enroll in Medicaid or TRICARE before 65, the same rule applies: you keep the account but cannot contribute.

If you gain other health coverage — through a spouse's plan, a parent's plan, or a government program — you lose may be able to access. The exception is coverage that does not count as "health insurance" under IRS rules, such as accident-only plans, dental-only plans, or vision-only plans. You can have those alongside an HSA.

Self-Employed and Gig Workers

If you are self-employed, you can open an HSA as long as you buy an HDHP on the individual market and meet all other requirements. You contribute to your HSA the same way an employee does, and you deduct your contributions on your tax return. There is no difference in may be able to access — self-employment status does not disqualify you.

If you have a spouse who works for an employer with health benefits, you cannot be covered under their plan and have your own HSA. You must buy separate coverage. If your spouse also has self-employment income and you both buy individual HDHPs, you can each have your own HSA.

Part-Time and Seasonal Workers

Part-time status does not affect HSA may be able to access. If your employer offers an HDHP and you are enrolled in it, you can open an HSA regardless of how many hours you work. Some employers do not offer benefits to part-time workers, in which case you would need to buy an individual HDHP to be may be able to access.

Seasonal workers face the same rule: if you are enrolled in an HDHP during the season you work, you are may be able to access. If you lose coverage when the season ends, you lose may be able to access at that point. You can reopen an HSA the next season if you re-enroll in an HDHP, though you will need a new account.

Frequently Asked Questions

Can I have an HSA if I have a spouse with traditional health insurance?

Yes, as long as you are not covered under their plan. If you are enrolled in your own HDHP and your spouse is enrolled in a traditional plan, you can each have your own HSA. You cannot be covered by both plans at once.

What happens to my HSA if I leave my job?

Your HSA stays with you. The account is yours, not your employer's. You can keep the money in it, continue to use it for medical expenses, and even continue to contribute if you buy an individual HDHP. If you do not buy another HDHP, you lose the right to contribute but keep the account and the money in it.

Can I open an HSA if I am on my parents' health insurance?

Only if they do not claim you as a dependent on their taxes, or if they claim you as a dependent but do not cover you under their health plan. If they claim you as a dependent and cover you under their plan, you cannot open your own HSA.

Do I lose my HSA when I turn 65 and enroll in Medicare?

You lose the right to contribute new money, but you keep the account and the money in it. You can continue to use the balance for may have access to medical expenses, including Medicare premiums and out-of-pocket costs, for the rest of your life.

Can I have an HSA if I am self-employed with no employees?

Yes. Buy an HDHP on the individual market and you are may be able to access. You contribute to your HSA and deduct the contributions on your tax return, the same as any other self-employed person with health insurance.