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HSA eligibility

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Level 5
last updated ‎February 23, 2020 8:22 AM

I seem to recall that if you have ACA coverage, or Medicare, you are not eligible for HSA deductions. Is that true?

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Level 3
last updated ‎February 23, 2020 8:22 AM

If a taxpayer is enrolled in Medicare, no contributions to HSAs are allowable. For ACA coverage, I think it defaults to the normal limits for HDHP plans (deductible of $1,350 for individual or $2,700 for family in 2020). I'm not sure if HDHP plans are offered through the exchanges, but Medicare is a definite "No" for HSAs.

I drive a minivan.

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Level 3
last updated ‎February 23, 2020 8:22 AM

If a taxpayer is enrolled in Medicare, no contributions to HSAs are allowable. For ACA coverage, I think it defaults to the normal limits for HDHP plans (deductible of $1,350 for individual or $2,700 for family in 2020). I'm not sure if HDHP plans are offered through the exchanges, but Medicare is a definite "No" for HSAs.

I drive a minivan.

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Level 12
last updated ‎February 23, 2020 8:22 AM

The 2020 minimum annual deductible is $1,400 for self-only HDHP coverage (up from $1,350 in 2019) and $2,800 for family HDHP coverage (up from $2,700 in 2019).

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Level 3
last updated ‎February 23, 2020 8:22 AM

Right you are on the limits. I had the wrong year in my response. Thanks!

I drive a minivan.
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Level 12
last updated ‎February 23, 2020 8:22 AM

The coverage through the Marketplace has to be a HDHP to meet the HSA requirements. Just because it is through the marketplace or not has nothing to do with HSA. You are eligible for HSA deduction if your coverage plan is High Deductible and qualifies for HSA. In the Marketplace, you can select "HSA qualified" as a Filter, for shopping the plans.

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