No, you cannot use your HSA funds to pay the Medicare premiums for your spouse. This paragraph from page 9 of the IRS Publication says that they aren't generally qualified expenses. 1
Can I use my HSA for my spouse’s medical expenses?
You definitely can, even if your spouse doesn’t have an HSA or a HDHP. You can also use your HSA funds to pay for the medical expenses of any dependent children claimed on your income tax return. This is true even if your spouse has individual-only coverage under a traditional medical plan.
What happens if my spouse is 65 and I have an HSA?
If your spouse is 65 but you’re aged 64 or under, and you are the owner of the HSA, you can still only use your savings to pay for qualified medical expenses. If you use your money for anything else, you’ll be subject to the 20% additional tax penalty.
Can I have Medicare and HSA at the same time?
Yes. Medicare doesn’t offer an HSA qualifying option. You can’t make contributions to your HSA for any months after you enroll in any part of Medicare, even if you’re also covered on an HSA qualifying plan. 3. Aren’t I automatically enrolled in Medicare Part A at age 65?
Who can I Spend my HSA dollars on?
In addition to your spouse, you can spend your HSA dollars on your family. This generally includes your children or any other dependents you can claim on your tax return. The IRS defines dependents as a qualifying child or relative, based on the IRS guidelines. So this could include a family member relation for whom you care.
Can you use money from an HSA when you are on Medicare?
Funds already in the HSA can still be used for qualified medical expenses upon enrollment in Medicare, including to reimburse taxpayers for Medicare premiums (but not premiums for Medicare supplemental insurance) as well as to pay for long-term-care costs and insurance.
Can my spouse use my HSA if they are not on my insurance?
When choosing a High Deductible Health Plan (HDHP) that qualifies for use with an HSA (qualified HDHP), remember that the IRS views Health Savings Accounts as individually owned, but your employees' HSA funds can be used for their spouses and any other tax dependents—regardless of if they choose individual or family ...
Can you use HSA for other family members not on my insurance?
To wrap it up, you can use HSA funds for you, your spouse, your children, and other dependents, and even those you could claim as dependents but don't for some reason or another. HSAs become even more appealing, knowing you can use pre-tax dollars to pay for your entire family's healthcare expenses!
Can I use my HSA for someone not on my insurance?
Can my HSA be Used for Dependents Not Covered by my Health Insurance Plan? Yes. Qualified medical expenses include unreimbursed medical expenses of the accountholder, his or her spouse, or dependents.
Rule 1: Your annual contributions limit is based on who is covered under your high deductible health plan (HDHP)
The IRS sets annual contribution limits for HSAs based on whether you have an individual or a family account and health plan. If you have an individual HDHP as your health insurance, and your spouse has their own health insurance plan through another source, you can only contribute up to the individual contribution limits to your HSA.
Rule 2: You can only use your HSA to pay for current qualified medical expenses
While you can use any savings you amassed prior to getting married to pay for your spouse’s current or future qualified medical expenses, you can’t use it to pay for anything in the past.
Rule 4: Once you turn 65, you can use your HSA on whatever you want
Once you turn 65, your HSA operates like a normal retirement account. That means you can use your money on whatever you want for you and your spouse. You just have to pay income taxes on the disbursed amount unless you use your money to pay for qualified medical expenses, which are always tax-free.
How to increase your HSA balance faster
If you’ve just gotten married and all of a sudden there’s a whole other person or persons now utilizing your HSA, you might feel as though your annual contribution doesn’t go as far as it used to. Here are a couple ways to make sure you have the money you need for the expenses you have:
What is the HSA rule?
The Internal Revenue Service (IRS) has special rules regarding Health Savings Accounts (HSA) and how they should be managed. Those rules can be confusing—especially for married spouses who have more than one reimbursement account, or if they work for the same employer. Here are some tips to help you better understand HSA rules.
Can Bob contribute to Annie's HSA?
Bob may contribute up to the family coverage maximum to his HSA, and may also use his HSA funds to pay Annie’s eligible medical expenses. In this situation, the advantage of one spouse having family coverage is the ability to contribute the family maximum to the HSA.
Can two spouses contribute to HSA?
Under current rules, two spouses may not both contribute to a single HSA via payroll de duction.
Does Annie have HMO?
How It Works. Let’s look at one example: Annie has individual-only HMO coverage with her employer. Annie is not eligible to make HSA contributions. Annie’s spouse, Bob, participates in a qualified HDHP at work and enrolls in family coverage.
Can spouses open HSA?
Also, it may be beneficial for each spouse to open an HSA to take advantage of any catch-up contributions if one of the spouses is 55 or older.
What is the limit for HSA for 2017?
If you have single insurance and your spouse has single insurance, then your limit for 2017 is $3400, plus an additional $1000 if you are over age 55. However, if your spouse has family insurance where you have secondary coverage, then you have "other insurance" and can't make deductible contributions to an HSA.
Can I use my HSA to pay for my spouse's medical expenses?
And yes, you can continue to use your HSA to pay for your spouse's medical expenses, including long-term insurance and medicare part A and D expenses. **Say "Thanks" by clicking the thumb icon in a post.
Overview
- One question that pops up fairly regularly is, “On whom can I spend my HSA funds?”. You have gone through all of the right steps of selecting HDHP coverage, opening an HSA, and making contributions to your HSA. You know that you need to spend you HSA dollars on qualified medical expenses, but whose medical expenses can be paid for with HSA dollars? In other words, we ar…
You and Your Spouse
- Intuitively, we know that you can spend your HSA funds on yourself. Heck, you insured yourself, opened the HSA, contributed the funds; I sure hope you can spend it on yourself! What is less known is your HSA contributions can be used on your spouse as well. This is especially true if you have self-only coverage: even if not covered by an HDHP, medical expenses spent on your spous…
Children and Other Dependents
- In addition to your spouse, you can spend your HSA dollars on your family. This generally includes your children or any other dependents you can claim on your tax return. The IRS defines dependents as a qualifying child or relative, based on the IRS guidelines. So this could include a family member relation for whom you care. This is a great incent...
People You Could Have Claimed as Dependents
- The IRS includes wording that includes an additional category of people who couldhave been your dependents, but were not for varying reasons. The goal of this third group is to increase the people for whom spending counts as your qualified medical expenses. The IRS defines this group as: So these are not true dependents but are “candidates” for dependents but were not for variou…
HSA Spending For Children of Divorced Parents
- IRS publication 969 provide specific language on how qualified medical expenses for children of divorced parents is handled: Basically, they again increase the universe of people that constitute a qualified medical expense. They do this by saying, “if the parents were separated for the last year’s last 6 months, the child counts as a dependent for both for HSA’s”. In other words, either p…
Family Coverage vs Individual Coverage
How It Works
- Let’s look at one example: Annie has individual-only HMO coverage with her employer. Annie is not eligible to make HSA contributions. Annie’s spouse, Bob, participates in a qualified HDHP at work and enrolls in family coverage. Bob may contribute up to the family coverage maximum to his HSA, and may also use his HSA funds to pay Annie’s eligible medical expenses. In this situati…
Spouses Who Work For The Same Employer
- If both an employee and his or her spouse work for the same employer, there are specific regulations about contributions that can get confusing. Under current rules, two spouses may not both contribute to asingleHSA via payroll deduction. Since HSAs can be used to pay for eligible medical expenses for a spouse and dependents regardless of what type...
How to Prevent HSA Rule Breaking
- Many times, HSA rule breaking can be avoided by learning each family’s situation. During enrollments, ask the following questions to help raise red flags: 1. Does an employee or his or her spouse have family coverage for a qualified HDHP or another medical plan? 2. Does an employee or his or her spouse already have a HSA? How do they plan on contributing? One of the ways Am…