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
Compliance
PUBLISHED
July 24th, 2026
EBSA RELEASES AGENDA OUTLINING UPCOMING REGULATORY ACTIONS
Bryan Gross
On July 3, 2026, the Trump administration released its 2026 Regulatory Plan and Unified Agenda of Regulatory and Deregulatory Actions (Agenda), identifying its significant ...
Read More
Retirement
PUBLISHED
July 23rd, 2026
RETIREMENT ISN’T JUST A BENEFIT – IT’S A STRATEGY
Doug Prince
Retirement plans are often measured by participation rates, match levels, and account balances. But those metrics tell only part of the story. More organizations ...
Read More
Benefits+
PUBLISHED
July 16th, 2026
The State Of The Benefits Market: What Employers Need To Know Now
Kevin Sliwa
At MJ’s recent Economic Outlook, our team shared perspectives on the forces shaping today’s business and benefits landscape—from rising healthcare costs to evolving insurance ...
Read More
Employee Benefits
PUBLISHED
July 14th, 2026
ACCESS, COST AND CARE: LESSONS FROM HEALTHCARE LEADERS ON BUILDING SUSTAINABLE BENEFITS STRATEGIES
Courtney Hutchison
The headlines are everywhere: healthcare costs are rising, hospitals are under pressure, and employers are balancing quality care with affordability. But according to healthcare ...
Read More
Retirement
PUBLISHED
July 10th, 2026
WHAT ARE “TRUMP ACCOUNTS” (530A ACCOUNTS)—AND SHOULD EMPLOYERS CARE?
Scott T. Bilyou
At MJ’s recent Economic Outlook, our team shared perspectives on the forces shaping today’s business and benefits landscape—from rising healthcare costs to evolving insurance ...
Read More
Benefits+
PUBLISHED
July 7th, 2026
AVOIDING COMPENSATION EMERGENCIES BEFORE THEY HAPPEN
Julie Bingham
Growth, acquisitions, leadership transitions, and organizational change often expose weaknesses that have existed beneath the surface for years. Compensation programs are no exception. One ...
Read More