Only eligible individuals can establish HSAs and make contributions (or have them made on their behalf). An individual’s eligibility for HSA contributions is typically determined monthly as of the first day of the month. In general, an HSA contribution can only be made for months in which the individual meets all the eligibility requirements.
To be HSA-eligible for a month, an individual must:
- Be covered by a high deductible health plan (HDHP) on the first day of the month;
- Not be covered by other health coverage that is not an HDHP (with limited exceptions);
- Not be enrolled in Medicare; and
- Not be eligible to be claimed as a dependent on another person’s tax return.
An exception to this general rule is the last-month rule, in which an individual is treated as HSA-eligible for the entire year if they satisfy the HSA eligibility requirements on Dec. 1 of the year.
In the case of married individuals, each spouse who is an eligible individual who wants to have an HSA must open a separate HSA. Married couples cannot have a joint HSA, even if they are covered by the same HDHP. Also, if another taxpayer is entitled to claim an individual as a dependent, the individual is not eligible for HSA contributions, even if the other person does not actually claim the dependent.
In addition, an individual who is covered by a standard type of health flexible spending account (FSA) (through your employer or your spouse’s employer) or health reimbursement arrangement (HRA) cannot make HSA contributions. However, there are certain types of health FSAs and HRAs that are compatible with HSA eligibility, such as post-deductible or limited-purpose health FSAs or HRAs.
Related Blogs
Compensation and Total Rewards
PUBLISHED
January 13th, 2026
How to Respond When An Employee Prompts an AI Pay Discussion
Julie Bingham
“Hey Chat, please summarize this meeting.” Harmless, right? (And for this scenario, let’s assume it’s on the company’s secure AI bot.) “Hey Chat, what’s ...
Read More
Benefits+
PUBLISHED
January 9th, 2026
Upcoming ACA Reporting Deadlines
DeAnn Deck
Employers subject to Affordable Care Act (ACA) reporting under Internal Revenue Code Sections 6055 or 6056 should prepare to comply with reporting deadlines in ...
Read More
Benefits+
PUBLISHED
December 29th, 2025
DEADLINE FOR SUBMITTING GAG CLAUSE ATTESTATION IS DEC. 31, 2025
DeAnn Deck
Federal law prohibits group health plans and health insurance issuers from entering into contracts with health care providers, third-party administrators (TPAs) or other service ...
Read More
Benefits+
PUBLISHED
December 26th, 2025
ERISA Fiduciary Breach Claims in J&J Lawsuit Dismissed Again
DeAnn Deck
The U.S. District Court for the District of New Jersey has once again dismissed a class-action lawsuit filed against Johnson & Johnson (J&J), which ...
Read More
Compliance
PUBLISHED
December 22nd, 2025
IRS Releases Guidance on Trump Accounts: Tax-Favored Accounts for Children
DeAnn Deck
On July 4, 2025, President Donald Trump signed a major tax and spending bill, commonly referred to as the “One Big Beautiful Bill Act” ...
Read More
Benefits+
PUBLISHED
December 19th, 2025
Calculating FMLA Leave During Holiday Weeks
DeAnn Deck
Holiday weeks can pose an extra administrative challenge to employers with employees on leave under the federal Family and Medical Leave Act (FMLA). In ...
Read More