 TITLE: What Is a Health Savings Account (HSA)? CONTENT: Who Qualifies for an HSA?\n-------------------------\nThere are limits on who can open an HSA and how much you can contribute to your account each year. The limits and amounts can change from one year to the next.\nTo qualify for an HSA:\n*   You need to have a high deductible health plan (HDHP), an insurance plan that has relatively lower premiums and a high deductible. In 2020, HDHPs have a deductible of $1,400 or higher for individual plans, or $2,800 or higher for family plans. You may be eligible if your spouse has a non-HDHP plan, as long as the plan doesn't cover you.\n*   You don't have additional health coverage, although there are exceptions for special types of coverage, such as disability, dental, vision and long-term care.\n*   You can't be enrolled in Medicare.\n*   No one can claim you as a dependent on their tax returns.\nIf you qualify, the contribution limit for 2020 is:\n*   $3,550 if you have an individual health insurance plan.\n*   $7,100 if you have family coverage.\n*   If you're 55 or older, your contribution limit increases by $1,000.\n*   If you earned less than the year's contribution limit from the job where you got health insurance or you're self-employed, you can't contribute more than you earned.\n*   Employer contributions count toward your annual limit.\nSimilar to an IRA, you can contribute to your HSA for the current year through the next year's tax deadline. The amounts are also prorated if you're only eligible for part of the year.\nOr, if you're eligible on December 1, you could be considered eligible for the entire year if you remain eligible through December 1 of the following year. The \"last-month rule\" can be complicated, but you can speak with the company that will run your HSA to ensure you don't overcontribute and have to pay a penalty. END