A health savings account (HSA) is an account funded to help you save for future medical expenses. There are certain advantages to putting money into these accounts, including favorable tax treatment.
Who Can Have an HSA?
Any adult can have an HSA if you:
Have coverage under an HSA-qualified, high-deductible health plan (HDHP)
Have no other first-dollar medical coverage (other types of insurance, such as specific injury or accident, disability, dental care, vision care, or long-term care, are permitted)
Are not enrolled in Medicare
Cannot be claimed as a dependent on someone else’s tax return
Contributions to your HSA can be made by you, your employer or both. However, the total contributions are limited annually. If you make a contribution, you can deduct the contributions (even if you do not itemize deductions) when completing your federal income tax return.
Contributions to the account must stop once you are enrolled in Medicare. However, you still use your HSA funds to pay for medical expenses tax-free.