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FREQUENTLY
ASKED QUESTIONS AND ANSWERS FOR |
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33. I'm retired, age 63, spouse 60, current health ins. is BlueCross PPO with $5,000 deductible (per person). Main question is: can we set up one of the new HSA accounts for 2004 and put aside pre-tax dollars event though we have no "earned income"? Our income consists of my Social Security benefit plus interest from various investments. I guess our concern is if you must have "earned income" and secondly if our current Blue Cross PPO/$5,000 deductible primary health policy qualifies. Our current health is probably not good enough to quality for a new health insurance policy.
34. If I choose not to be covered under my spouse's plan at work and I carry my own insurance policy, can I still qualify for an HSA? 35. Can I open an HSA for a dependent who is not a child? 36. I have BlueCross Blue Shield Individual policy with family deductible of $4500. My insurance agent says it doesn't qualify for HSA since it has prescription card benefit. Is this correct? You can open an HSA if you do not have "earned income," (and you do not need to itemize either) but you must have a HSA qualified health insurance policy to open an HSA. To find out if you have an HSA qualified health insurance policy, go to the question "Do I have a HSA qualified policy?”
34. If I choose not to be covered under my spouse's plan at work and I carry my own insurance policy, can I still qualify for an HSA? Yes, provided you buy an HSA qualified health insurance plan. To find out what kind of plan that is, please see the question (and answer) to "Do I have a HSA qualified health insurance plan?"
35. Can I open an HSA for a dependent who is not a child? There is no HSA restriction with regard to this question. There may be state restrictions, but the best way to find out if an HSA is available in this regard is to call those insurers in your states offering HSAs.
36. I have BlueCross Blue Shield Individual policy with family deductible of $4500. My insurance agent says it doesn't qualify for HSA since it has prescription card benefit. Is this correct? Your plan may qualify. The U.S. Department of the Treasury has recently stated that those with a health insurance plan that is in all other respects HSA compatible, except that it provides prescription drug coverage below the deductible, then until 1/1/2006, such persons can have an HSA. This is how the U.S. Department of Treasury's media release described this recent Treasury ruling: http://www.hsainsider.com/treasury/treasury_7.pdf INTERACTION OF HDHP BENEFITS WITH PRESCRIPTION BENEFITS AND TRANSITIONAL RELIEF Prior guidance noted that an eligible individual must be covered by an HDHP and generally no other health plan that is not an HDHP. Guidance issued today clarifies that individuals covered by a health plan that provides prescription drug benefits before the minimum annual deductible of an HDHP has been satisfied may not make contributions to an HSA. However, companion guidance also issued provides transition relief to those individuals covered by both an HDHP and by a separate health plan or rider that provides prescription drug benefits before the deductible of the HDHP is satisfied. Under the relief, such individuals continue to be eligible to contribute to HSAs before 2006.
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