What qualifies as an HSA eligible health plan in 2024?

What are the requirements for HSA in 2024?

HSA eligibility

For 2024, this means: It has an annual deductible of at least $1,600 for self-only coverage and $3,200 for family coverage. Its out-of-pocket maximum including annual deductible does not exceed $8,050 for self-only coverage and $16,100 for family coverage.

What qualifies for a high-deductible health plan?

Per IRS guidelines in 2025, an HDHP is a health insurance plan with a deductible of at least $1,650 if you have an individual plan or a deductible of at least $3,300 if you have a family plan. The deductible is the amount you'll pay out of pocket for medical expenses before your insurance pays anything.

What happens if you contribute to HSA without HDHP?

There is no 20% penalty on excess contributions. If you no longer are enrolled in an HDHP you are not eligible to make contributions to your HSA, but you may request withdrawals for qualified medical expenses.

Am I eligible for HSA?

To be an eligible individual and qualify for an HSA contribution, you must meet the following requirements. You are covered under a high deductible health plan (HDHP), described later, on the first day of the month. You have no other health coverage except what is permitted under Other health coverage, later.

Can I use my HSA to pay health insurance premiums if I retire early?

If you pay for your medical expenses out of pocket now, you'll have more saved in your HSA account to help pay for medical expenses once you retire. If you retire before age 65 and you aren't yet eligible for Medicare, you can use money in your HSA to pay your medical coverage premiums.

How do I know if something is HSA-eligible?

Why are some plans not eligible for HSA?

Coverage is the reason why many Marketplace plans aren't HSA-eligible. Eligible plans must meet these three requirements in 2024: 1. The deductible is at least $1,600 for individuals and $3,200 for families.

What is the 12 month rule for HSA?

It means you must remain eligible for the HSA until December 31 of the following year. The only exceptions are death or disability. If you violate the testing period requirement, your ineligible contributions become taxable income.

Can I use HSA for gym membership?

Gym memberships. While some companies and private insurers may offer discounts on gym memberships, you generally can't use your FSA or HSA account to pay for gym or health club memberships. An exception to that rule would be if your doctor deems fitness medically necessary for your recovery or treatment.

What is considered a high deductible health plan in 2025?

Per the 2025 guidance, an HDHP musts have a deductible of at least $1,650 for individual coverage and a deductible of at least $3,300 if you have a family plan. In addition, the plan's out-of-pocket limit must be no higher than $8,300 for an individual plan or $16,600 for a family plan.

How do I know if my BCBS plan is HSA-eligible?

* To have an HSA, you must be enrolled in a high-deductible health plan (HDHP) that meets the IRS requirements for a qualified HDHP, including having a combined deductible for medical and pharmacy benefits.

What are the HSA rules for 2024?

For 2024, if you have self-only HDHP coverage, you can contribute up to $4,150. If you have family HDHP cover- age, you can contribute up to $8,300. For 2025, if you have self-only HDHP coverage, you can contribute up to $4,300. If you have family HDHP coverage, you can contribute up to $8,550.

What makes a health plan HSA-eligible?

HSA-qualified HDHPs must have a higher annual deductible than regular individual health insurance plans, a maximum limit on annual deductible and medical costs, and offer no insurance coverage until the plan participant reaches the deductible.

What disqualifies you from an HSA?

An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA.

What is the downside of an HSA?

Drawbacks of HSAs include tax penalties for nonmedical expenses before age 65, and contributions made to the HSA within six months of applying for Social Security benefits may be subject to penalties. HSAs have fewer limitations and more tax advantages than flexible spending accounts (FSAs).

At what point should I stop contributing to my HSA?

Once you turn 65, you can use the money in your HSA for anything you want. If you don't use it for qualified medical expenses, it counts as income when you file your taxes. Six months before you retire or get Medicare benefits, you must stop contributing to your HSA.

What happens if I contributed to HSA when I wasn't eligible?

If an employee is not enrolled in an HSA-eligible health plan but has contributions in an HSA account, the employee should contact the bank that manages the account to correct the error. It may involve withdrawing the excess amount.

How do I know if I am HSA-eligible?

No other health insurance besides an HDHP is allowed to qualify for an HSA, including Medicare. You can't be claimed as a dependent on someone else's tax return to qualify for an HSA.

Are HSA plans worth it?

One of the biggest advantages of an HSA is that it offers a triple tax advantage, which means: Contributions to an HSA are federally tax-deductible, reducing your taxable income. Depending on where you live, you may also get a break on state income taxes. Assets in an HSA can potentially grow federal tax-free.

Who should not use a high-deductible health plan?

A chronic illness, such as heart disease or diabetes, can be much more expensive to manage under an HDHP than a traditional health care plan. With these conditions, regular medications and health screenings may be required. These costs may quickly add up until deductibles are finally met.