The Basic Rule: You Need a High-Deductible Health Plan

To open a Health Savings Account (HSA), you must be enrolled in a high-deductible health plan (HDHP) — a specific type of health insurance that has a higher yearly deductible than standard plans. Your insurance company will tell you whether your plan qualifies. If you have that type of plan, you meet the first requirement.

The IRS sets the minimum deductible amounts each year. For 2024, a may have access to plan for individual coverage must have a deductible of at least $1,600, and for family coverage at least $3,200. These numbers change annually, so check with your insurance provider or the IRS website to confirm the current year's thresholds.

You do not need to be self-employed, work for a large company, or have any particular job status. If your employer offers an HDHP, or if you buy one on your own through the health insurance marketplace, you can open an HSA as long as that plan meets the definition.

Key Takeaways

  • You must be enrolled in a high-deductible health plan (HDHP) with a deductible that meets the IRS minimum for your coverage type.
  • You cannot have other health coverage at the same time, with limited exceptions for specific plans like dental or vision insurance.
  • You must be a U.S. citizen or resident alien with a valid Social Security number or Individual Taxpayer Identification Number (ITIN).
  • You cannot be claimed as a dependent on someone else's tax return, and you cannot be enrolled in Medicare.
  • Your employer does not have to contribute to your HSA — you can open and fund one on your own if you have an HDHP.

Who Cannot Open an HSA

Even if you have an HDHP, you are not allowed to open an HSA if you have other health coverage running at the same time. This includes Medicare, Medicaid, TRICARE (military health coverage), or a standard health plan through your employer or spouse's employer. The rule exists because HSAs are designed to pair with high-deductible plans specifically.

A few types of coverage do not block you from opening an HSA: dental-only plans, vision-only plans, accident insurance, disability insurance, and long-term care insurance. These are considered separate from medical coverage and do not conflict with an HDHP.

You also cannot open an HSA if you are claimed as a dependent on someone else's tax return, even if you have your own HDHP. Once you file taxes independently, you become able to open one. If you are enrolled in Medicare, you cannot open a new HSA, though you can keep and spend money in an existing account.

Citizenship and Tax Requirements

You must be a U.S. citizen or a resident alien. You will need either a Social Security number or an Individual Taxpayer Identification Number (ITIN) to open an account. Banks and HSA custodians will ask for this during the process process.

You do not have to file taxes or owe taxes to open an HSA, but you do need a valid tax identification number. If you are not sure whether you have resident alien status, the IRS website has a worksheet to help you determine it, or you can ask the bank or HSA provider opening your account.

Age and Employment Status

There is no minimum age to open an HSA if you meet the other requirements — a parent can open one for a child enrolled in a may have access to HDHP. There is also no maximum age. You can open an HSA at any point during the year if you enroll in an HDHP, though contribution limits are prorated if you start mid-year.

Your employment status does not matter. You can open an HSA whether you work full-time, part-time, are self-employed, or are unemployed — as long as you have an HDHP. If you lose your job but keep your health coverage through COBRA or the ACA marketplace, and that coverage is an HDHP, you can continue to contribute to your HSA.

How to Check If Your Plan Qualifies

Your insurance company will usually label an HDHP clearly in plan materials or on their website. If you are unsure, call the customer service number on your insurance card and ask directly: "Is my plan a high-deductible health plan that qualifies for an HSA?" They can tell you yes or no when ready.

You can also check the IRS website, which publishes a list of plans that have been certified as HSA-may have access to. If your plan appears there, it meets the requirement. Some employers also note HSA may be able to access in their benefits materials when they offer an HDHP.

Opening an Account Once You may have access to

Once you confirm you have an HDHP, you can open an HSA through a bank, credit union, or a dedicated HSA custodian. You do not have to use the same institution where you have your checking account. Some employers set up HSA accounts automatically for employees who enroll in an HDHP; others require you to open one yourself.

To open an account, you will need your Social Security number or ITIN, proof of your HDHP enrollment (your insurance card or a letter from your employer), and basic personal information like your address and date of birth. The process usually takes a few minutes online or over the phone.

You can contribute to your HSA yourself, your employer can contribute, or both of you can. There is an annual limit on total contributions — set by the IRS and adjusted each year — but you control how much you contribute up to that limit.

What Happens If Your Coverage Changes

If you switch to a non-HDHP plan or enroll in Medicare, you can no longer contribute new money to your HSA. However, money already in the account stays there and you can continue to spend it on may have access to medical expenses for the rest of your life. The account does not close or disappear.

If you lose your HDHP coverage temporarily — for example, between jobs — you have a grace period. You can continue to contribute to your HSA for up to two months after coverage ends, as long as you re-enroll in an HDHP within that window. If you do not re-enroll, contributions made during the grace period may be subject to tax and penalties.

Frequently Asked Questions

Can I open an HSA if my employer does not offer one?

Yes. If your employer does not offer an HSA but you are enrolled in an HDHP through the marketplace or a private plan, you can open an HSA on your own through a bank or HSA custodian. You will need proof of your HDHP enrollment, which your insurance company can provide.

What if I have a spouse with a different health plan?

Each person with an HDHP can open their own HSA. If your spouse has a standard plan and you have an HDHP, you can open an HSA but cannot cover your spouse under your plan. If you both have HDHPs, you can each open separate accounts.

Do I lose my HSA if I change jobs?

No. Your HSA belongs to you, not your employer. If you change jobs, your account stays open and the money remains yours. You can continue to use it for medical expenses and keep contributing if your new employer offers an HDHP or you enroll in one on your own.

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

Only if you are not claimed as a dependent on their tax return. If they claim you as a dependent, you cannot open an HSA even if you have your own HDHP. Once you file taxes independently, you become able to open one.

What if I am not sure whether I am a resident alien?

The IRS has a worksheet on their website to help you determine resident alien status. You can also ask the bank or HSA provider — they often have resources to help, or can direct you to the IRS. If you have an ITIN instead of a Social Security number, you can still open an HSA.