Question

Which of the following individuals may qualify for a health savings account (HSA)?

A.            Cyrus and Iris are covered by a plan through Cyrus's employer. Their deductible is $2,700.

B.            Jada and Bob are covered by Medicare and a supplemental insurance policy.

C.            Eric is covered by Medicaid.

D.            Kacie has health insurance through the Marketplace. Her deductible is $600.

Answer 1

Option A. Cyrus and Iris are covered by a plan through Cyrus's employer. Their deductible is $2,700

To qualify for an HSA, the taxpayer must be eligible, as per standards set out by the Internal Revenue Service (IRS). An eligible individual is one who has a qualified HDHP, has no other health coverage, is not enrolled in Medicare, and is not claimed as a dependent on someone else’s tax return.

So, Eric, Jada & Bob will not qualify for HSA as they are covered under Medicare.

Health Insurance is not covered under HSA. So, Kacie will not qualify for HSA.