Can my wife inherit my HSA account?
Asked by: Beau O'Hara | Last update: October 20, 2025Score: 4.8/5 (55 votes)
Can my spouse inherit my HSA?
If your spouse is the only designated beneficiary, your HSA will be transferred to your spouse and they will own the account. Your spouse will receive all the benefits of account ownership and can make tax-free withdrawals to pay for qualified health care expenses.
What happens to an HSA account when the owner dies?
What happens to an HSA at death? Like an IRA account, when a person sets up an HSA, they name a beneficiary. If the beneficiary is a surviving spouse, the unused portion of the decedent's HSA passes directly to the spouse and becomes his or her HSA; there is no tax liability.
Can HSA be transferred to spouse?
Each spouse who wants to contribute to an HSA must open a separate HSA. Dollars cannot be transferred between the HSAs. However, one spouse may use withdrawals from their HSA to pay or reimburse the eligible medical expenses of the other spouse, without penalty.
Can my spouse use my HSA if not on my insurance?
Yes, as long as you use the funds to pay for qualified medical expenses, you can pay for any family member who is a tax dependent on your tax return.
Can I Use My HSA For My Spouse?
What is the 12 month rule for HSA?
It means you must remain eligible for the HSA until December 31 of the following year. The only exceptions are death or disability. If you violate the testing period requirement, your ineligible contributions become taxable income.
How does HSA work for married couples?
As it stands, two spouses may not both contribute to a single HSA via payroll deduction. Both spouses may contribute to their individual accounts via payroll deduction and then use funds from either HSA to pay for each other's medical expenses.
What happens to unused HSA funds?
Unlike many flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs), unused HSA funds automatically carry over to the following year. Even if your employer provided the account and made contributions, the account belongs to you — so any remaining funds are carried over every year.
Can I use my HSA for dental?
Your HSA also covers expenses for standard dental cleanings and dental check-ups. One thing to keep in mind is that some of these procedures may have a co-payment, so it's important that you check with your dental insurance provider to find out exactly what you'll have to pay out of pocket.
Can my spouse use my HSA after I retire?
Your spouse: Your HSA transfers to your spouse along with all its tax benefits, meaning your spouse can continue to take tax-free withdrawals from the account to pay for health care expenses.
What happens to HSA when you turn 65?
Once you turn 65, you can use the money in your HSA for anything you want. If you don't use it for qualified medical expenses, it counts as income when you file your taxes.
What is the IRS HSA limit for 2024?
For 2024, the annual contribution limits on deductions for HSAs for individuals with self-only coverage is $4,150 (increase of $300) and $8,300 for family coverage (increase of $550). There is an additional contribution amount of $1,000 for taxpayers who are age 55 or older.
Can you use HSA for funeral expenses?
Endorsed by the National Funeral Directors Association, the “Funeral Coverage Act of 2024” (H.R. 7693) introduced by Rep. Kevin Hern (R-OK), would designate funeral expenses as a qualified expense eligible for coverage under Health Savings Accounts (HSAs).
What happens to an HSA when someone dies?
Upon the death of an HSA account holder, any amounts remaining transfer to the designated beneficiary.
Can a spouse override a beneficiary on a Bank account?
While a spouse doesn't override a designated beneficiary on a bank account, they may be entitled to a portion of the assets in a payable-on-death bank account if those assets are community property.
Is HSA a marital asset?
Yes, contributions made to a Health Savings Account (HSA) while married are considered marital property. HSAs are treated like retirement accounts during a divorce.
Can I use my HSA to pay for my gym membership?
Generally, the IRS doesn't allow pretax dollars in HSAs or FSAs for gym memberships. This is because they see them as expenses for general well-being rather than medical necessity. However, with a Letter of Medical Necessity (LMN), your HSA or FSA could be used to fund those expenses.
Can I use HSA for glasses?
Yes! You can definitely use funds from your flexible spending account (FSA) or health savings account (HSA) to purchase prescription glasses. (FSAs and HSAs can be used for many other vision- and eye health-related expenses, too, but we'll discuss that more in a bit.)
Are tampons HSA eligible?
With the passage of the CARES Act in March 2020, tampons and other menstrual care products are now fully FSA-/HSA-eligible. According to the text of the bill, menstrual care products include, “tampon, pad, liner, cup, sponge, or similar product used by individuals with respect to menstruation…”
Who can inherit an HSA account?
If you die and are married, your HSA money typically transfers to your spouse. Non-spouse beneficiaries must withdraw all the funds and pay income tax on the money they receive.
Can I ever cash out my HSA?
As a practical matter, you are allowed to withdraw funds from your HSA at any time for any reason. But if you aren't using the funds to cover a qualified medical expense, then you'll be stuck paying a penalty tax.
What happens if you never use your HSA?
Myth #2: If I don't spend all my funds this year, I lose it. Reality: HSA funds never expire. When it comes to the HSA, there's no use-it-or-lose-it rule. Unlike Flexible Spending Account (FSA) funds, you keep your HSA dollars forever, even if you change employers, health plans, or retire.
Can I use my HSA for my spouse not on my insurance?
The IRS allows you to use your HSA to pay for eligible expenses for your spouse, children or anyone who is listed as a dependent on your tax return. That's true whether you have individual coverage or family coverage with an HSA through your health plan.
Can I use my HSA for my dog?
The short answer is yes, you can use your HSA for veterinary expenses. Under current IRS guidelines, eligible medical expenses include those that are primarily for the prevention or alleviation of a physical or mental defect or illness.
What disqualifies you from an HSA?
An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses generally cannot make contributions to an HSA.