Can I Use My Hsa to Pay for Dental Insurance Premiums
Can I Use My HSA Coin to Pay for My Health Insurance Premiums?
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A health savings account, or HSA, lets you lot put aside money for medical expenses while taking a tax deduction for the contributions you brand to the business relationship. While you tin can utilize HSA money to pay for a diversity of medical and dental services and procedures, you generally can't use it to pay premiums for health insurance. There are some exceptions, however.
Who's Eligible for an HSA
You can open up an HSA but if you are enrolled in a high deductible health plan. That's an insurance programme with higher out-of-pocket costs than most. As of 2015, plans meeting these criteria were considered high-deductible:
- For single coverage, an annual deductible of at least $i,300 and a maximum annual out-of-pocket cost of at least $6,450. (The latter number rises to $6,550 in 2016.)
- For family coverage, an annual deductible of at least $2,600 and a maximum annual out-of-pocket cost of at to the lowest degree $12,900. (The latter number rises to $thirteen,100 in 2016.)
The central thing to understand hither is that anyone with an HSA is already covered by insurance, and the tax code already includes deductions for insurance premiums. (Premiums for employer-sponsored insurance are paid with pre-taxation dollars.) Then using tax-exempt HSA coin to pay premiums would essentially be challenge two deductions for the aforementioned expense.
Premiums You Can Pay With an HSA
There are several exceptions to the rule confronting using HSA money for insurance premiums. Most of these utilize in situations where you're in transition from i job or insurance coverage to another. You can use funds from a health savings business relationship to pay:
- Premiums for continuation coverage under COBRA, the federal law that allows you lot to keep your wellness insurance after leaving a job, as long equally y'all pay the full cost yourself. You can use HSA money to pay COBRA premiums both for yourself and for your family.
- Whatever health insurance premiums while you're receiving unemployment benefits. Here, also, yous tin can utilize HSA money to pay premiums for both yourself and your family.
- Medicare premiums for Office A or Part B coverage, if y'all're 65 or older.
- Premiums for long-term care insurance. The amount of HSA money y'all can employ for these premiums depends on your age.
If you lot practice pay any of these insurance premiums out of your HSA, y'all cannot have any other deduction for those premiums.
Source: https://www.sapling.com/7735970/can-pay-health-insurance-premiums
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