To open an HSA, you must meet the following criteria:

• Be currently enrolled in a qualifying High Deductible Health Plan (HDHP).
  
  
• Cannot be enrolled in Medicare.
  
  
• Cannot be claimed as a dependent on someone else’s tax return.
  
  
• Cannot be covered under your own or spouse’s employer sponsored health care plan that is not a qualified HDHP.
  
  

Restrictions

• HSA funds used for non-qualified medical expenses will be assessed a 10% tax penalty and will also be taxed as regular income.
  
  
• Funds withdrawn after age 65 (or if you become disabled) are exempt from the 10% tax penalty- however, the funds will still be subject to income taxes if the funds are used for non-qualified medical expenses.