To contribute to an HSA, you must be covered by what type of plan?

• A. A Traditional low-deductible plan
• B. Any type of health plan
• C. A plan without health benefits
• D. A High-Deductible Health Plan (HDHP)

Answer: (D)

An HSA can be funded only if you’re covered by a qualifying health plan. The plan must be a High-Deductible Health Plan (HDHP), which means it has a higher minimum deductible and a defined maximum out-of-pocket limit set by the IRS. This pairing is what makes you eligible to contribute to an HSA, aligning tax-advantaged savings with higher-deductible coverage.

A traditional low-deductible plan isn’t eligible because it doesn’t meet the HDHP criteria. A plan without health benefits isn’t a health plan at all, so it wouldn’t qualify. “Any type of health plan” is too broad because only HDHPs qualify for HSA contributions.