Questions and Answers
If a health savings account (HSA) owner’s spouse or dependents are covered under a health insurance plan that is not a high deductible health plan (HDHP), are HSA distributions to pay their qualified medical expenses tax free?
Yes. HSA distributions are tax free (excluded from income) if made for any qualified medical expense of the HSA owner, the HSA owner’s spouse, and dependents (without regard to their status as eligible individuals). However, distributions made for expenses reimbursed by another health plan are not tax free, whether or not the other health plan is an HDHP.
(Posted: 10/31/2007)
