HSA accounts

[bigman1]

I have a question on HSA accounts and was wondering if anyone here is a CPA or IRS guy that may be able to answer my question.

Im divorced father and my ex wife has an HSA account and she is trying to tell me I can not have secondary insurance on my son due to her insurance and HSA account. I know that her new spouse can not have secondary but where is it stated that I as a father can not help cover my expneses and have secondary insurnace on my son. Can anyone help me, Yes I know I should call the IRS and I will I was just hoping someone here may be able to help as well.

 

[Steve123]

I have a question on HSA accounts and was wondering if anyone here is a CPA or IRS guy that may be able to answer my question.

Im divorced father and my ex wife has an HSA account and she is trying to tell me I can not have secondary insurance on my son due to her insurance and HSA account. I know that her new spouse can not have secondary but where is it stated that I as a father can not help cover my expneses and have secondary insurnace on my son. Can anyone help me, Yes I know I should call the IRS and I will I was just hoping someone here may be able to help as well.

Hey Big,

I'm not an expert on the Health and Welfare side of the business but some thoughts for you to refine your questions to others.

I don't think it's a case where you cannot have insurance on your son. I beleive the question is whether such Insurance is Primary or Secondary. This is all discussed, generally, within the policy itself. I would contact your insurance provider. You mentioned contacting the IRS but I don't think the Internal Revenue Code speaks to such issues in detail but I could be wrong. Again, I'm not an H&W guy. Now the tax treatment of the HSA could be another story entirely. Are there issues with taxbility of Primary Vs Secondary self insurance payments??? I don't know and that's something for a CPA more than likely. But first I woul find out if there is an issue with having the insurance on your son and wehter it's Prim. or Second.
Sorry I can't be more helpfull.

If you were asking about 401k or Pension, I could have hooked you up much better.

 

[Sassy]

You probably want to confirm this with a tax professional, but I don't think you can have secondary coverage and still qualify for a HSA. Here is the link to the IRA's info on HSA Publication 969 (2008), Health Savings Accounts and Other Tax-Favored Health Plans

Qualifying for an HSA

To be an eligible individual and qualify for an HSA, you must meet the following requirements.

• You must be covered under a high deductible health plan (HDHP), described later, on the first day of the month.
• You have no other health coverage except what is permitted under Other health coverage , later.
• You are not enrolled in Medicare.
• You cannot be claimed as a dependent on someone else's 2008 tax return.

Under the last-month rule, you are considered to be an eligible individual for the entire year if you are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers).

If you meet these requirements, you are an eligible individual even if your spouse has non-HDHP family coverage, provided your spouse's coverage does not cover you.
If another taxpayer is entitled to claim an exemption for you, you cannot claim a deduction for an HSA contribution. This is true even if the other person does not actually claim your exemption. Each spouse who is an eligible individual who wants an HSA must open a separate HSA. You cannot have a joint HSA.

 

[bigman1]

Steve123 thank you for your answer, the insurance I have is secondary due to the birthdate of me and my ex wife. I also should have mentioned I do not claim him as a dependate ass I gave that option to my ex since he lives with her. Nor do I claim any of the medical expense on my tax return.

The reason I mention IRS is because HSA is ran by the IRS as it is a savings account as well and after 65 you can take the money out for any reason and the amount you put into the account earns interest and is tax free and rolls over year to year.

If this helps at all any other answer would be great. I also spoke to the IRS and all the file says is about a SPOUSE having secondary and of course im no longer a spouse.

 

[bigman1]

Thank you Sassy as mentioned everything in the IRS form for 2010 states SPOUSE so your right I have a call into my CPA. Everyone I speak to though has a different answer but I think Im ok due to the fact I claim nothing and im not the spouse. I really wish the IRS could give a cut and dry answer but truth be told if it is wrong and they can earn money they will point it out..lol