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Anybody not allowed to start a HSA?

Started by Sam, December 29, 2018, 07:51:13 PM

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My wife just looked on fidelity, and she says we don't qualify for an HSA because our health plan doesn't meet the high deductible levels set by the IRS. Our plan doesn't have a deductible.

This doesn't make sense to me, and I'll ask her about it. But I'm wondering if other people have the same issue?





It's just the way the IRS rules work.  To open an HSA account (and have the corresponding tax benefits), you have to have a qualifying high-deductible health insurance plan, since the idea was that you'd then be able to pay the health care costs relating to the high deductible with pre-tax dollars. If your health care plan doesn't meet the IRS definition for a high deductible health plan (HDHP), no HSA for you.  Here's the IRS publication spelling it all out:
All the best,

Recovering Engineer

I can't open an HSA either but it's a good problem to have. I'll happily forgo the savings account for a strong medical plan and $500 deductible.