In what situation might a person be considered eligible for a Health Savings Account (HSA)?

A person is considered eligible for a Health Savings Account (HSA) when they are enrolled in a High Deductible Health Plan (HDHP). This type of insurance plan has higher deductibles than traditional health plans, allowing the account holder to use pre-tax dollars for qualified medical expenses. The HSA is designed to help individuals save for future health costs while benefiting from tax advantages.

Being enrolled in a normal health plan does not meet the specific requirement for HSA eligibility, as these plans typically have lower deductibles. Having dependent children alone does not qualify someone for an HSA; eligibility is strictly tied to the type of health insurance coverage. Similarly, receiving government aid does not influence eligibility for an HSA, as it relates to the client's health plan type rather than their financial status or assistance programs they might be on. Thus, enrollment in a High Deductible Health Plan is the key criterion for being eligible for an HSA.