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HSA self-only or family coverage

GoDawgs
Level 1

Do any tax forms indicate self-only or family coverage for HSA accounts? Doesn't appear the W-2, 1099-SA, or 5498 have any indication on it.  

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sjrcpa
Level 15

It's the high deductible health plan that is individual or family. The client will (should) know. Maybe they have a 1095 that lists the covered people.

The more I know, the more I don't know.

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6 Comments 6
Just-Lisa-Now-
Level 15
Level 15

You have to ask the client if its only for themself or can they use it for the whole family.

 


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
sjrcpa
Level 15

It's the high deductible health plan that is individual or family. The client will (should) know. Maybe they have a 1095 that lists the covered people.

The more I know, the more I don't know.
BobKamman
Level 15

@Just-Lisa-Now- You have to ask the client if its only for themself or can they use it for the whole family.

That won't work, because even with a self-only plan the funds can be used to pay medical expenses for spouse and dependents.

If the amount is greater than what is allowed for a self-only plan, I assume it's family. Maybe I shouldn't, but I see enough high-income seniors working past 65 for Fortune 100 companies who don't qualify at all, because they have Medicare A, and no one complains about that.  

qbteachmt
Level 15

HSA accounts are individually owned, so in the name of that one person. There is no "family HSA" account ownership provision. The account owner has to be the insured by an HSA-qualifying plan to be able to open that account. The Amount to put into the account is driven by if the coverage is individual or family. Once the plan changes or no longer applies, the HSA stands as fully functional but cannot accept new contributions.

Medical costs can be paid from that one account on behalf of any person that would be considered a qualified expense.

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BobKamman
Level 15

@qbteachmt 

What I used to hate about HSA's is that they changed the rules on them every year, and I had only one client who had one.  (His mother was an insurance agent.).  

Now, if you tell someone in a 22% bracket that they are going to get $1,200 free money from IRS, they will wet their pants in anticipation.  But if you add, it involves depositing $5,500 into an HSA that they can then use for medical expenses they already pay, they will just give you a blank stare.  

qbteachmt
Level 15

I am always surprised how people misunderstand or undervalue the power of an HSA. Other than, if you have great medical insurance, then of course, you wouldn't be bothered with the functions of an HSA, since you don't qualify. It's one of the biggest parts of my own financial management and has been since I left a "corporate" job with BP-ARCO.

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