HSA Gifting
Dear Sir/Madam,
If a grandmother makes a deposit directly to a grandson’s health savings account, does that amount count against the $14K that she can exclude annually from gift tax?
Thanks,
Chris
Dear Sir/Madam,
If a grandmother makes a deposit directly to a grandson’s health savings account, does that amount count against the $14K that she can exclude annually from gift tax?
Thanks,
Chris
Permalink Submitted by Alan - IRA critic on Tue, 2015-08-18 23:10
Chris, for this grandson it does. It would be exempt if paid to a provider directly for a medical bill, but the HSA contribution is not a direct payment to a provider and it is therefore a countable gift. With respect to the exclusion it would qualify for the 14k exclusion because it is a present value gift since the grandson has immediate access to it. Qualifying for the 14k exclusion means that in combination with other gifts to the grandson, the excludable gifts would be 14k in total.