What happens if I lose HSA eligibility?

If you lose HSA eligibility, you don’t lose the money in your account—it’s still yours to use for qualified expenses, tax-free. You simply can’t make new contributions while you're ineligible. If you become eligible again in the future, you can start contributing once more. Read more →

How do I decide if an HSA is right for me?

HSAs can be a smart choice for many people—including those who rarely use their insurance, those who use it often, and even those in between. Low utilizers benefit from lower premiums and tax savings, while high utilizers can still save overall by paying for care with pre-tax dollars. Even medium utilizers often come out ahead when factoring in premium and tax savings. The key is to compare your options and be open to shopping for care when it makes sense. Read more →

What if I am only HSA-eligible for part of the year?

If you're only HSA-eligible for part of the year, your contribution limit may need to be prorated to avoid a 6% penalty. This usually applies when your eligibility ends before December 1. However, if your eligibility begins later in the year and you're covered by an HSA-qualified plan on December 1, you may be able to use the “last month rule” to contribute the full annual amount. Just keep in mind: to avoid taxes and a 10% penalty, you’ll need to remain HSA-eligible for the entire following calendar year. Read more →

What if I use my HSA for an ineligible expense?

If you use HSA funds for non-qualified expenses before age 65, you’ll owe income tax on the amount plus a 20% penalty. After age 65, the penalty goes away, though taxes still apply to ineligible withdrawals. However, you can offset ineligible expenses with eligible ones you paid out-of-pocket in previous years—as long as they occurred after your HSA was established. Read more →

How much can I contribute to my HSA?

In 2025, you can contribute up to $4,300 if you have self-only coverage or up to $8,550 if you have family coverage under an HSA-qualified high-deductible health plan. If you’re age 55 or older, you can also make a $1,000 catch-up contribution . These limits apply to the total contributions made by you, your employer, or anyone else on your behalf. Read more →

Who is eligible to set up an HSA?

To be eligible to open and contribute to a Health Savings Account (HSA), you must have an HSA-qualified high-deductible health plan, be an adult, not be claimed as a dependent, and avoid disqualifying coverage like Medicare or a spouse’s FSA. You don’t need to be the primary insured on the health plan, and married couples can split contributions or open separate accounts, especially if both are age 55 or older and want to make catch-up contributions. Read more →

FAQs – Page 5 – JME Insurance

What happens if I lose HSA eligibility?
April 23, 2025HSA FAQ Excerpts0 min
How do I decide if an HSA is right for me?
April 23, 2025HSA FAQ Excerpts0 min
What if I am only HSA-eligible for part of the year?
April 23, 2025HSA FAQ Excerpts0 min
What if I use my HSA for an ineligible expense?
April 23, 2025HSA FAQ Excerpts0 min
How much can I contribute to my HSA?
April 23, 2025HSA FAQ Excerpts0 min
Who is eligible to set up an HSA?
April 23, 2025HSA FAQ Excerpts0 min

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FAQs

What happens if I lose HSA eligibility?

How do I decide if an HSA is right for me?

What if I am only HSA-eligible for part of the year?

What if I use my HSA for an ineligible expense?

How much can I contribute to my HSA?

Who is eligible to set up an HSA?

Have more questions?

JME Insurance Agency
A Division of Patriot Growth Insurance Services, LLC

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Medicare Disclosure

FAQs

What happens if I lose HSA eligibility?

How do I decide if an HSA is right for me?

What if I am only HSA-eligible for part of the year?

What if I use my HSA for an ineligible expense?

How much can I contribute to my HSA?

Who is eligible to set up an HSA?

Have more questions?

JME Insurance Agency A Division of Patriot Growth Insurance Services, LLC

Quick Links

Medicare Disclosure

JME Insurance Agency
A Division of Patriot Growth Insurance Services, LLC