In reviewing the 1018-page House Bill on health reform there appear to be a few issues that could negatively impact health savings accounts. There is a limit on the out-of-pocket costs that could effectively narrow the plan design for HSAs. The limits set in the bill set a max-out-of pockets (single/family) of $5,000 and $10,000. There [...]
Yes. IRS Notice 2008-59, Q&A 33 addresses the question of a dependent being claimed by a former spouse.
Q-33. Do qualified medical expenses for HSA purposes include the § 213(d) medical expenses incurred by an account beneficiary’s child who is claimed as a dependent by the account beneficiary’s former spouse?
A-33. Yes.
Yes – the majority of HSA restrictions center around contributions to the HSA with fewer restrictions on the withdrawals. In answer to the question above, money in an HSA can ALWAYS be withdrawn tax-free for the medical expenses of the account holder (also known as the account beneficiary in the IRS regs), the account holder’s [...]
The Internal Revenue Service said that economic stimulus payments directly deposited to individual retirement accounts and other tax-favored accounts may be withdrawn tax- and penalty-free.
The relief is designed to help taxpayers who may have been unaware that by choosing direct deposit for their entire regular tax refund, they were also choosing to have their stimulus [...]
