An HSA is a unique and flexible option to save for future health expenses with a triple tax advantage. This savings makes it even more valuable than other investment options like 401Ks and Roth IRAs that only offer a double tax advantage.
Unfortunately, because the tax savings are so great, there are limitations on who is eligible to open an account.
To qualify for an HSA:
- You must be enrolled in a high deductible health plan.
- You must not be enrolled in any other non-HSA qualified health insurance.
- You can not be claimed as a dependent on anyone else's tax return.
- You can not be enrolled in Medicare Part A or B, or Medicaid.
- You can not have a general purpose FSA. Limited FSA’s are eligible to cover Dental, Vision and dependent care if your HDHP does not cover those.