Can You Sign Up for an HSA Outside of Open Enrollment?

A Health Savings Account (HSA) is a savings account for qualified medical expenses. It offers a tax-advantaged way to manage healthcare costs, allowing funds to be contributed, grow, and be withdrawn tax-free for eligible expenses. HSAs can serve as a financial tool for both immediate healthcare needs and long-term medical savings, including expenses in retirement.

Understanding HSA Eligibility

To be eligible for an HSA, an individual must be covered by a High Deductible Health Plan (HDHP). An HDHP is a health insurance plan with minimum deductibles and maximum out-of-pocket limits set annually by the IRS. For 2025, a self-only HDHP must have a deductible of at least $1,650, while a family HDHP must have a deductible of at least $3,300.

For 2025, these limits are $8,300 for self-only coverage and $16,600 for family coverage, covering expenses like deductibles, co-payments, and coinsurance but not premiums. Beyond the HDHP requirement, an individual cannot be covered by any other non-HDHP health insurance, such as Medicare, and cannot be claimed as a dependent on someone else’s tax return.

Gaining Eligibility Outside Open Enrollment

While many individuals enroll in health plans during the annual open enrollment period, it is possible to gain eligibility for a High Deductible Health Plan and, subsequently, an HSA at other times. This occurs through a Special Enrollment Period (SEP), which is triggered by Qualifying Life Events (QLEs). These events allow individuals to enroll in or change health insurance outside the standard open enrollment window.

Common QLEs include significant life changes such as getting married, the birth or adoption of a child, or losing other health coverage. A change in employment status, such as starting a new job that offers an HDHP or losing a job that provided different health insurance, can also qualify. If a QLE enables an individual to enroll in an HDHP, they have a limited timeframe, often 60 days before or after the event, to select a new plan and become eligible for an HSA.

Opening Your HSA Account

Once eligibility for an HSA is established through an HDHP, the next step involves opening the account. For individuals whose HDHP is offered through an employer, the process involves setting up the HSA directly with a preferred custodian. Contributions can be made through payroll deductions, which offer tax advantages by reducing taxable income.

Individuals who are eligible but whose employer does not offer an HSA, or those who are self-employed, can open an HSA directly with a financial institution. Many banks, credit unions, and other financial service providers offer HSA accounts. To open an account, individuals need to provide personal identification, such as a Social Security Number and driver’s license, along with contact and beneficiary information.