Can You Contribute to an HSA Without Earned Income?

Health Savings Accounts (HSAs) offer a tax-advantaged way to save for qualified medical expenses. A common question is whether earned income is required to contribute to an HSA. This article clarifies the criteria for contributing to an HSA and how contributions operate.

HSA Eligibility Requirements

To be eligible to contribute to an HSA, an individual must be covered by a High Deductible Health Plan (HDHP). For 2025, the Internal Revenue Service (IRS) defines an HDHP as a health plan with a minimum annual deductible of $1,650 for self-only coverage and $3,300 for family coverage. The plan’s out-of-pocket maximums, which include deductibles, co-payments, and other amounts but not premiums, cannot exceed $8,300 for self-only coverage or $16,600 for family coverage in 2025.

Meeting these HDHP criteria is a prerequisite for HSA eligibility. Other factors can disqualify an individual from contributing, even with an HDHP. These include being covered by any other non-HDHP health insurance plan, such as Medicare, TRICARE, or a spouse’s non-HDHP plan.

Individuals enrolled in Medicare are not eligible to contribute to an HSA. Being claimed as a dependent on someone else’s tax return also prevents HSA contributions. Receiving certain health benefits from the Department of Veterans Affairs (VA) within the past three months can also impact eligibility.

Understanding Contributions and Income

Earned income is not a prerequisite for making HSA contributions. An individual’s ability to contribute depends on their eligibility status, primarily tied to their enrollment in an HDHP and the absence of any disqualifying coverage. The source of funds used for HSA contributions is not restricted by the IRS.

Contributions can originate from various sources, including personal savings, investment income, or gifts from family members. Unemployment benefits or other non-earned income streams can also be used to fund an HSA. Personal contributions made to an HSA are generally tax-deductible, irrespective of the specific income source from which the funds originated.

As long as an individual meets the established eligibility criteria, they can contribute up to the annual limit. The absence of traditional earned income does not prevent an otherwise eligible individual from saving for healthcare expenses in this tax-advantaged account.

Contribution Limits and Practicalities

Once eligibility is established, individuals can contribute to their Health Savings Account up to specific annual limits set by the IRS. For 2025, the maximum annual contribution for self-only HDHP coverage is $4,300. Individuals covered under a family HDHP plan can contribute up to $8,550 for the year.

An additional “catch-up” contribution of $1,000 annually is permitted for individuals aged 55 and over. This brings their total possible contribution to $5,300 for self-only coverage or $9,550 for family coverage in 2025. If an individual is eligible for only part of the year, their contribution limit is prorated based on the number of months they were eligible.

Contributions can be made directly to the HSA custodian. Many employers facilitate contributions through payroll deductions, which can offer additional tax advantages by being pre-tax. The deadline for making HSA contributions for a given tax year is generally the tax filing deadline, typically April 15 of the following year.