What is a requirement for HSA eligibility?

For Health Savings Account (HSA) eligibility, individuals must be enrolled in a high deductible health plan (HDHP). This requirement is fundamental because HSAs are specifically designed to complement these types of plans. HDHPs are defined by minimum deductible amounts and maximum out-of-pocket limits set by the IRS.

Being in an HDHP allows individuals to pair their health insurance with an HSA, which permits them to contribute pre-tax dollars to save for qualified medical expenses. This vehicle not only allows for tax-deductible contributions but also offers tax-free withdrawals for eligible medical costs and tax-free growth of the account over time.

The other options do not align with the criteria established for HSA eligibility. Employment status, other forms of health insurance coverage, and student status do not restrict or define one's ability to set up or contribute to an HSA as long as the individual meets the HDHP requirement.