Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Pay COBRA premiums using HSA
Old 08-21-2006, 10:20 PM   #1
Thinks s/he gets paid by the post
free4now's Avatar
 
Join Date: Dec 2005
Posts: 1,220
Pay COBRA premiums using HSA

I was glancing through the HSA basics brochure at:

http://www.treasury.gov/offices/publ...english-06.pdf

and noticed something surprising. In the last column it says that an HSA can be used to pay COBRA healthcare insurance premiums!

If that's true, it seems like a no-brainer to open an HSA for almost everyone who uses CORBA insurance. Who wouldn't want the tax deduction? I feel like a dunce that I've been paying COBRA for a few months now without having noticed this.

__________________

__________________
free4now is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Pay COBRA premiums using HSA
Old 08-22-2006, 03:43 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,690
Re: Pay COBRA premiums using HSA

i believe the hsa can only pay off a hsa approved policy ...those are those high deductable policies some companies have taken...if its any cobra policy which i m not sure then wow,that would be a great deal........
__________________

__________________
mathjak107 is offline   Reply With Quote
Re: Pay COBRA premiums using HSA
Old 08-22-2006, 08:09 AM   #3
Moderator Emeritus
Martha's Avatar
 
Join Date: Feb 2004
Location: minnesota
Posts: 13,211
Re: Pay COBRA premiums using HSA

Yes it is nice, but you still need an HSA qualified insurance plan in the first place to establish the account, and if you get insurance through work, that is not going to be in your control.

Long-term care insurance, Medicare, and COBRA premiums can be paid from an HSA. Also, health insurance premiums paid while receiving unemployment compensation may be paid from the HSA.
__________________
.


No more lawyer stuff, no more political stuff, so no more CYA

Martha is offline   Reply With Quote
Re: Pay COBRA premiums using HSA
Old 08-22-2006, 12:18 PM   #4
Thinks s/he gets paid by the post
free4now's Avatar
 
Join Date: Dec 2005
Posts: 1,220
Re: Pay COBRA premiums using HSA

That brochure said:

Any adult can contribute to an HSA if they:
• Have coverage under an HSA-qualified “high
deductible health plan” (HDHP)
• Have no other first-dollar medical coverage (other
types of insurance like specific injury insurance or
accident, disability, dental care, vision care, or longterm
care insurance are permitted).
• Are not enrolled in Medicare.
• Cannot be claimed as a dependent on someone else’s
tax return.


I optimistically hoped that I could contribute if any one of these things were true, but it turns out that all of these things have to be true.*

It looks like having non-HSA CORBA insurance means you have first-dollar non-HSA medical coverage, so the second bullet point makes you ineligible for HSA accounts.* *

If you know you are going to be leaving work, this might be a good reason to switch to an HSA work plan.
__________________
free4now is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Why so few HSA accounts offered? safari Health and Early Retirement 6 01-03-2007 10:27 AM
HSA or other Pre-tax to pay for Health Care whitestick Health and Early Retirement 7 12-28-2006 10:13 AM
COBRA Ginger Other topics 1 11-15-2005 05:27 PM
COBRA Limits REWahoo FIRE and Money 3 11-02-2005 08:48 AM

 

 
All times are GMT -6. The time now is 10:18 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2014, vBulletin Solutions, Inc.

Early Retirement News right to your Email!

Stay up-to-date with all the latest news to your inbox!

unsusbcribe at anytime with one click

Close [X]