A Health Savings Account, commonly referred to as an HSA, is an individual account designed to help individuals save money tax-free for medical expenses. It’s often paired with a high-deductible health plan (HDHP) and comes with many advantages, including tax deductions, tax-free growth, and tax-free withdrawals for qualified medical expenses. Can I use my HSA for my spouse? Many individuals with Health Savings Accounts (HSAs) ask this. HSAs are valuable tools for managing healthcare costs, with a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. This article explores using HSA funds for a spouse’s medical expenses, clarifying eligibility, outlining qualified medical expenses, and highlighting the benefits of using HSAs for family healthcare.
Using Your HSA for Your Spouse
HSAs allow you to pay for qualified medical expenses for yourself, your spouse, and dependents. A significant benefit is that your spouse doesn’t need to be enrolled in your high-deductible health plan (HDHP) to use your HSA funds for their medical costs. However, both you and your spouse must be covered under an HDHP to contribute to an HSA. Importantly, to use your HSA for your spouse, the IRS must consider them your tax-dependent. This means your spouse relies on you financially for more than half of their support.
Qualified Medical Expenses
The IRS has specific guidelines on qualified medical expenses. These include doctor visits, prescriptions, surgeries, vision or dental care, and other health-related costs. Cosmetic procedures, or those not medically necessary, aren’t qualified. IRS Publication 502 contains a list of qualifying medical and dental expenses.
You are the sole account holder of your HSA, even though you can use the funds for your spouse. For 2024, the contribution limit is $3,850 for an individual and $7,750 for a family. The family limit applies even if only one spouse has an HSA, as long as both are covered by an HDHP. If you are 55 or older, you can contribute an additional $1,000 catch-up contribution, bringing the family limit to $8,750.
You can use your HSA for your spouse’s eligible medical expenses, just as you would for your own. These must qualify under IRS guidelines, including services like doctor visits, prescriptions, and hospital stays. Expenses must be incurred after the HSA was established and not reimbursed by any other source, including health insurance.
Documentation
Documentation is crucial. Keep all receipts, invoices, and explanations of benefits for medical treatments paid with your HSA in case of an IRS audit.
HSA for Dependents
Beyond your spouse, you can use HSA funds to cover eligible medical expenses for tax dependents, including children, or other individuals meeting IRS criteria for dependency. The same rules regarding qualified expenses apply to your spouse and dependents.
Advantages of Using an HSA
Using your HSA for your spouse’s medical expenses helps manage healthcare costs as a couple and offers significant tax savings. HSA funds roll over yearly.
Divorce and HSAs
In the case of divorce, you can no longer use your HSA to pay for your ex-spouse’s medical expenses unless they qualify as a dependent.
FAQs
- Can I use my HSA for my spouse if they aren’t on my health plan?
- Yes, but they must be your tax dependent.
- What are some examples of qualified medical expenses?
- Doctor visits, prescriptions, surgeries, dental and vision care.
- What happens to my HSA if I get divorced?
- You can no longer use it for your ex-spouse unless they are your tax dependent.
- What are the contribution limits for 2024?
- $3,850 for an individual and $7,750 for a family.
- Where can I find a complete list of qualified medical expenses?
- IRS Publication 502.
- Can my spouse contribute to my HSA?
- Only if they are covered by an HDHP.