5 HSA Benefits That May Surprise You
Hello. I read Sarah Brenner’s 28 July 2021 posted newsletter regarding the subject referenced above. In subparagraph # 3 of that newsletter, she states:
“You can take tax-free distributions from your HSA for qualified medical expenses, including those of a spouse or dependent. This is true even if your spouse or child is not covered under the HSA-compatible high deductable health insurance. Your HSA can benefit your family member. This is true even if they do not have high deductible coverage themselves.”
My question pertaining to that subparagraph is, that still true if my spouse is currently on Medicare and Part B Supplemental Insurance?
I look forward to your reply.
Thank you.
Permalink Submitted by William Tuttle on Fri, 2021-07-30 10:58
Medicare coverage only affects HSA eligibility to make contributions.
Medicare Part B & D premiums, but not Medigap premiums, deductibles and any out-of-pocket expenses are HSA qualified medical expenses.
You can take tax-free distributions for any such expenses since the “establishment” date of your first HSA account. This means you can go back years and reimburse such unreimbursed expenses.