What Disqualifies You From Contributing to an HSA?

You are disqualified from contributing to a Health Savings Account if any one of these applies: you are not covered by a qualifying High Deductible Health Plan (HDHP), you have other health coverage that pays medical expenses before your HDHP deductible, you are enrolled in any part of Medicare, you can be claimed as a dependent on someone else’s tax return, or you are a non-resident alien for tax purposes.¹ Every rule must be satisfied at the same time. Miss one, and contributions for that month are not allowed.

Your Health Plan Does Not Qualify as an HDHP

Eligibility starts with your insurance. On the first day of any month you want to contribute, you must be covered by an HDHP that meets IRS thresholds.² For 2026, the plan must carry a minimum annual deductible of at least $1,700 for self-only coverage or $3,400 for family coverage, and its total annual out-of-pocket costs (deductibles, copays, and coinsurance, but not premiums) cannot exceed $8,500 for self-only coverage or $17,000 for family coverage.³

A plan an insurer labels “HDHP” can still fail the federal definition. Check the numbers yourself. One area worth a closer look is first-dollar coverage. Preventive care can be paid before the deductible without breaking HDHP status, but if the plan covers other services before the deductible kicks in, it may no longer qualify.¹

You Have Other Disqualifying Health Coverage

Even with a qualifying HDHP, another plan that reimburses general medical expenses before you satisfy the HDHP deductible ends your eligibility. The IRS calls this “other health coverage,” and the rule is broad.²

General-Purpose FSAs and HRAs (Including Your Spouse’s)

A general-purpose Flexible Spending Account or Health Reimbursement Arrangement is one of the most common disqualifiers, because it can pay medical bills before you hit the HDHP deductible. This applies even when the account belongs to your spouse. If your spouse’s employer offers a general-purpose FSA or HRA that could reimburse your medical expenses, you cannot contribute to your own HSA.¹

Some account types work alongside an HSA. A limited-purpose FSA or HRA that only reimburses dental and vision expenses is permissible.⁴ A post-deductible HRA, which does not pay anything until after the HDHP deductible is satisfied, is fine. A suspended HRA, where the employee elects to freeze reimbursements, is another option.¹ Open enrollment is when to catch this. If your spouse elects a general-purpose FSA in November, your HSA eligibility disappears in January.

Coverage That Does Not Disqualify You

Not every additional policy is a problem. The statute lets you keep accident insurance, disability insurance, dental coverage, vision coverage, long-term care insurance, telehealth, and workers’ compensation coverage alongside your HDHP without losing HSA eligibility.² Fixed-amount hospital indemnity plans and specified disease policies, such as standalone cancer insurance, are also allowed. The dividing line is whether the additional plan reimburses the same general medical expenses your HDHP covers.

You Are Enrolled in Medicare

Enrolling in any part of Medicare immediately ends HSA eligibility. Part A, Part B, Part C, or Part D — it does not matter which. Once enrolled, neither you nor your employer should contribute.¹

The subtle trap is Social Security. When you apply for Social Security retirement benefits after age 65, you are automatically enrolled in Medicare Part A. That enrollment is retroactive for up to six months before the month you apply, though it cannot go back before the month you turned 65.⁵ Any HSA contributions made during those retroactive months become excess contributions.

If you plan to keep contributing past 65 while delaying Social Security, stop contributing at least six months before the month you apply for benefits. Pick your Social Security start date, count back six months, and make your last HSA contribution before that point.

You Have VA Care or TRICARE

Veterans who receive VA medical care face a nuanced rule. Care for a service-connected disability does not affect HSA eligibility at all; the statute explicitly protects it.² Care for a condition that is not service-connected generally means you must wait three months after that care before you can resume HSA contributions.¹

TRICARE is a straight disqualifier. Because it is not an HDHP and provides general medical coverage, TRICARE enrollment prevents HSA contributions even if you also carry an HDHP through a civilian employer.

You Can Be Claimed as a Dependent

If someone else can claim you as a dependent on their tax return, you cannot contribute to an HSA. The key word is “can.” The other person does not actually have to claim you. If you meet the dependency tests for relationship, age, residency, and support, the disqualification applies.²⁶

This catches many young adults. A 22-year-old college student with a qualifying HDHP through a part-time job might assume they can fund an HSA. But if their parents provide more than half their financial support, the student can be claimed as a dependent and cannot contribute to a personal HSA. A parent with their own HDHP coverage could contribute to their own HSA and use it to pay the student’s qualified medical expenses.

You Are a Non-Resident Alien

Non-resident aliens cannot contribute to an HSA. Eligibility requires U.S. resident status for tax purposes, established through either the green card test or the substantial presence test. The restriction applies for any month in which you hold non-resident alien status. Foreign nationals on certain visas who have not yet met the substantial presence threshold should confirm their residency classification before enrolling in an employer’s HSA program.

What Happens If You Contribute While Ineligible

Contributing while ineligible creates an excess contribution. The IRS imposes a 6% excise tax on the excess amount for every year it remains in the account, and the penalty compounds annually until you fix it.⁷

To avoid the excise tax, withdraw the excess plus any earnings it generated before your tax filing deadline, including extensions. A late withdrawal is possible up to six months after the original due date by filing an amended return. Withdrawn contributions are not deductible, and the earnings must be reported as income for the year of withdrawal.⁸

HSA contributions, deductions, and distributions are reported on Form 8889.⁸ The 6% excise tax itself is calculated and reported on Form 5329.⁹ If your coverage or status is about to change, check each disqualifier month by month before you contribute; eligibility is tested on the first day of each month, not once at year-end.

1
Internal Revenue Service. Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans
2
Office of the Law Revision Counsel. 26 USC 223 – Health Savings Accounts
3
Internal Revenue Service. Rev. Proc. 2025-19 – 2026 Inflation Adjusted Amounts for Health Savings Accounts
4
FSAFEDS. Limited Expense Health Care FSA
5
Centers for Medicare & Medicaid Services. Original Medicare (Part A and B) Eligibility and Enrollment
6
Internal Revenue Service. Individuals Who Qualify for an HSA
7
Office of the Law Revision Counsel. 26 USC 4973 – Tax on Excess Contributions to Certain Tax-Favored Accounts
8
Internal Revenue Service. Instructions for Form 8889 (2025)
9
Internal Revenue Service. Instructions for Form 5329 (2025)