If you’re eligible to participate in an HSA, you can contribute right up until April 15, 2021, the expected deadline for filing and paying your 2020 federal income taxes (unless the deadlines changes, as it did in 2020 for 2019 returns). But that’s not the only benefit: An HSA can also lower your healthcare costs.

Who is not eligible to participate in an HSA?

Must be 18 years of age or older. Must be covered under a qualified high-deductible health plan (HDHP) on the first day of a certain month. May not be covered under any health plan that is not a qualified HDHP.

Do I qualify for HSA 2019?

To be eligible, HSA rules require you to have a qualifying high-deductible health plan, or HDHP, which is defined the same in 2019 as it was in 2018. To qualify, the insurance plan must have a deductible of at least $1,350 for individuals and $2,700 for families.

What are the contribution limits for a HSA?

HSA Contribution Limits 2019. For 2019, the Internal Revenue Service raised the maximum contribution to HSAs by $50 to $3,500 for individuals and $100 to $7,000 for families.

Can you still contribute to an HSA if you are no longer eligible?

Another common mistake is for an HSA holder to continue contributing to their HSA when they are no longer eligible. Individuals must be enrolled in a HDHP and have no disqualifying coverage (such as enrollment in Medicare/Medicaid or coverage under a general purpose FSA or HRA) to be able to contribute to an HSA account.

Who is eligible to contribute to a health savings account?

Any eligible individual can contribute to an HSA. For an employee’s HSA, the employee, the employee’s employer, or both may contribute to the employee’s HSA in the same year. For an HSA established by a self-employed (or unemployed) individual, the individual can contribute.

When do excess HSA contributions have to be distributed?

To avoid this penalty, the excess contributions must be distributed to the account holder before the account holder’s federal income tax return filing deadline for that taxable year (typically April 15th).