To get an Individual HSA, you might think you need to meet a lot of requirements. Happily, Individual HSAs are very straightforward. It’s for everyone, whether you’re single, married, or have kids. You don’t have any income rules tied to it. The maximum amounts you can contribute each year are the same for everyone, and it’s a flat amount decided by the IRS. (For 2021, that max amount is $3,600 for individuals, or $7,200 for families. Learn more in this post.)
You do need to meet these requirements:
It’s also never too late to open an HSA. You can do it at any age, take it with you to any job or company, and keep it after you retire. It is completely yours to do with what you want (for health care spending of course).
This account isn’t tied to any employer, and it doesn’t dictate who can put money into it. If you have a benevolent aunt who wants to contribute to your account, if your spouse kicks in some money, or it’s just you putting money in—it all works for the HSA.
Sometimes people worry that they’ll put money into their HSA, not have medical bills, forget about it, and the money will disappear. That doesn’t happen with HSAs because, like a regular savings account, the money rolls over year to year and never expires.
Plus, you’re always going to have something to spend it on because everyday health products like over-the-counter medications are HSA eligible. It’s hard to get through a year without a headache, cold, or allergies! Other ordinary items and services like sunscreen, dentist appointments, and flu shots are covered, too. These are just the few in a long list of popular eligible items—and the list is extensive.
When you’re not using HSA funds to spend, you can invest them and watch them grow. Once you’re 65, you can withdraw the money, pay income taxes on it, and use it for anything you want—or save it for those medical bills that tend to increase with age. Whatever you opt for, it’s your money to spend on something fun or something necessary or both!