Yes, you are required to have a high deductible health plan (HDHP) to contribute to a Health Savings Account (HSA), as well as not having other health insurance coverage, or Medicare.
It doesn't matter whether your employer opened the account for you, or you set it up yourself.
An HDHP is a health plan that meets the following requirements:
- Self-only coverage - Minimum annual deductible not less than $1,500, maximum annual out of pocket expenses - $7.500
- Family coverage - Minimum annual deductible not less than $3,000, maximum annual out of pocket expenses - $15,000 HDHP.
You should check to see if your employer coverage meets the requirements to be considered HDHP. If it does, you just need to enter the information about when you were covered by the HDHP during 2023.
Here's how to do that in TurboTax:
- Open your tax return.
- Select Deductions & Credits.
- Scroll down to Medical, select Start to the right of 1099-SA, HSA, MSA.
- Answer the questions according to your situation.
- You will be asked about the accounts you have, your 1099-SA, and your HDHP coverage.
- Keep going until you have answered all of the questions in the section.
If your coverage through your employer doesn't qualify as HDHP, you have made an excess contribution and will be charged a penalty if the contribution and any earnings aren't returned by April 15, 2024.
If that is the case contact your bank and explain that you aren't eligible to contribute to an HSA.
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