A Health Savings Account (HSA) is like a personal savings account, but the money saved there is used to pay for your and your family’s qualified health care expenses.
You must participate in a High-Deductible Health Plan (HDHP) and cannot contribute to an HSA if you are covered by any other health plan (as an individual, spouse, or domestic partner) that is not a qualifying high-deductible health plan. If your spouse uses your insurance as secondary coverage, s/he must also be enrolled in a HDHP. In addition, you cannot participate if you are enrolled in Medicare. The HDHP must be your only health insurance; however, having dental, vision, disability and long term care insurance does not disqualify you from having an HSA.
Each year the federal government determines the maximum dollar amount both you and your employer may contribute. If you are age 55 or older, you may also make “catch-up” contributions in addition to the maximum contribution guidelines.
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