HSA - if they have VA?

[WITAXLADY]

I started reading and forgot what I was going to ask..

 

If someone has VA coverage - and meets the other requirements - high deductible - can they do an HSA?

Can the spouse do an HSA for just her?

Thank you,

D/WI

[BrewOne]

I believe a high deductible does not automatically mean it is a qualified HDHP, so I would want to make sure before I gave them a green light.  Sorry I can't find a good reference at the moment.

Single coverage is certainly possible for the spouse.

[Lee B]

I ran into this last year. If the taxpayer has other qualifying coverage for example via a spouse's employment then they cannot do an HSA .

My client set up an HSA anyway with both he and his employer making contributions.

I sent my client back to his employer to have the HSA contributions reversed, but his employer found it too difficult to do.

As a result my client ended up paying significant penalties.

 

[WITAXLADY]

yes - I will try and research also before April 1.. time flies so fast with S corp dates!1

Thank you,

D/WI

[kathyc2]

3 hours ago, Lee B said:

As a result my client ended up paying significant penalties.

The amount on W2 would be income, but as long as they removed the amount from HSA account there should not have been penalties.

[mcb39]

VA is not a high deductible insurance.