Are you eligible for an HSA?

There are certain requirements you need to meet in order to be eligible to open a health savings account (HSA). Answer a few quick questions to see if you qualify.

Question 1

Are you covered by a qualified High Deductible Health Plan (HDHP)?

What's a qualified HDHP?

To be a qualified high deductible health plan (HDHP), the coverage must meet the minimum deductible and maximum out-of-pocket set each year by the IRS. 
 

2019 HDHP maximum annual contribution:
Single (self only) = $3,500
Family = $7,000

Yes
No

Question 2

Do you have other health insurance in addition to your HDHP?

What are other types of health coverage?

If you are included in health coverage from a spouse or parent’s plan, that qualifies as “other types of health coverage.” For example, if your spouse has a flexible spending account (FSA) that reimburses medical expenses, you would be disqualified from contributing to an HSA. However, if your spouse has a limited purpose FSA (one that only reimburses dental and vision expenses, for example), then you might qualify for contributing to an HSA. Likewise, if you’re not included in your spouse’s health coverage, then you may qualify. Other types of coverage may include supplement or gap plans. Generally anything that reimburses medical expenses (as outlined in IRS publication 502 should be considered).
Yes
No

Question 3

Is it allowed coverage?

What is allowed coverage?

If you have insurance coverage that is “allowed,” you can still contribute to an HSA. Allowed coverage includes holding an insurance policy that covers: 
  • A specific disease or illness (i.e. cancer insurance)
  • A fixed amount payable per day (or other time period) of hospitalization
  • Liabilities from workers' compensation laws, tort liabilities
  • Liabilities related to ownership or use of property
  • Accident
  • Disability
  • Dental
  • Vision
  • Long-term care 
Yes
No

Question 4

Are you enrolled in Medicare?

What are Medicare Parts A, B, C & D?

Medicare is split into four parts: A, B, C and D.  
  • Part A covers hospital stays, skilled nursing facilities, hospice and some home health care.
  • Part B is medical insurance that covers doctor visits, outpatient hospital care, medical supplies and preventive services.
  • Part C is a plan offered by private companies instead of Medicare parts A and B.
  • Part D is a plan offered by private companies to provide prescription drug benefits.  
Yes
No

Question 5

Are you claimed as a dependant on another person's federal taxes?

Who is considered a federal tax dependant?

A covered dependent is an individual who can be claimed on another person’s tax return. This is important because if another person is entitled to claim you as an exemption, you can’t contribute to an HSA (even if they don’t actually claim the deduction).

A dependent is a qualifying child or qualifying relative. Not sure if someone qualifies as a dependent? Use the Who Can I Claim as a Dependent tool from the IRS.
Yes
No
PQ12397
t17083008fl 

Terms of Use   |   Disclosures   |   Privacy   |   Security   |   Report Fraud


The subject matter in this communication is educational only and provided with the understanding that Principal® is not rendering legal, accounting, investment advice or tax advice. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, investment or accounting obligations and requirements.

Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, Iowa 50392.

© 2020 Principal Financial Services, Inc.