I left my last job in early 2019 but opted to continue my benefits via COBRA, including a Health Savings Account/HSA. I'm now self employed as a consultant. Can I make contributions to the same HSA with my self employment income?
I do have a qualified High Deductible Health Plan (which is an IRS requirement for HSA eligibility).
I understood so. However when I spoke with customer service of the COBRA administrator (DiscoveryBenefits.com) they referenced me to some documentation that indicates that owners of sole proprietorships are no eligible for an HSA. See verbatim below (last bullet).
Does this apply in my situation? It seems strange to me that I'm allowed to extend my health benefits and HSA via COBRA, but not be able to contribute. Thank you.
From DiscoveryBenefits.com documentation:
"You are not eligible for an HSA if:
You are claimed as a dependent on someone else’s tax return.
You are covered by another plan that conflicts with the HDHP, such as Medicare, certain Flexible Spending Accounts (FSAs) or select Health Reimbursement Arrangements (HRAs).
You or your spouse are contributing to a Medical Flexible Spending Account (Medical FSA).
You are the owner (or family member of the owner) of a Limited Liability Company (LLC), S corporation, sole proprietorship or partnership company."
