May a retiree who is age 65 or older receive tax-free distributions from an HSA to pay the retiree’s contribution to an employer’s self-insured retiree health coverage?
A-43. Yes. Pursuant to section 223(d)(2)(B), the purchase of health insurance is generally not a qualified medical expense that can be paid or reimbursed by an HSA. See Notice 2004-2, Q&A 27. However, section 223(d)(2)(C)(iv) provides an exception for coverage for health insurance once an account beneficiary has attained age 65. The exception applies to both insured and self-insured plans.
Related Questions
- May a retiree who is age 65 or older receive tax-free distributions from an HSA to pay the retiree’s contribution to an employer’s self-insured retiree health coverage?
- If I am a retiree and age 65 or older, may I receive tax-free distributions from an HSA to pay my contribution to my employers retiree health coverage?
- Is the HSA (Health Savings Account) contribution limit increased for older people?
