Tax Question Related to Healtcare

[ivanl3]

I know these laws are in flux going forward, so my questions are about the current laws.


If I retire early, I am still eligible to purchase Healthcare through my former employer's retiree healthcare plan for my wife and me. The plan is 100% funded by the retirees; the company subsidizes 0% of it.

Questions:

1. Can I open an HSA and load it with pre tax dollars to use to pay the premium?

2. Can premiums be deducted on our taxes as my wife will continue to be working -- self employed as a real estate broker? If so, all of it, or just half?

Assume retirement gross income in excess of $200K. Not sure that matters.

Thanks.

 

[GalaxyBoy]

An HSA has to be linked to a high deductible insurance plan. See the Bogleheads wiki page here: https://www.bogleheads.org/wiki/Health_savings_account

Insurance premiums are deductible as part of all other medical expenses in excess of 10% of your AGI. See https://www.irs.gov/taxtopics/tc502.html

 

[ivanl3]

An HSA has to be linked to a high deductible insurance plan. See the Bogleheads wiki page here: https://www.bogleheads.org/wiki/Health_savings_account



Insurance premiums are deductible as part of all other medical expenses in excess of 10% of your AGI. See https://www.irs.gov/taxtopics/tc502.html

Thanks.

Looks like we can deduct the premiums on my wife's income though bc the group plan is unsubsidized.

That's a significant savings.

http://loopholelewy.com/loopholelewy/02-business-deductions/health-insurance-deduction.htm

 

[kaneohe]

https://www.wageworks.com/employees...e-my-hsa-to-pay-for-health-insurance-premiums

"Can I use my HSA to pay for health insurance premiums?

Generally, you cannot treat insurance premiums as qualified medical expenses unless the premiums are for:

a. Long-term care insurance, subject to IRS mandated limits based on age and adjusted annually (see IRS Publication 502: Long-Term Care).

b. Healthcare continuation coverage (such as coverage under COBRA – see IRS Publication 502: COBRA Premium Assistance.

c. Healthcare coverage while receiving unemployment compensation under federal or state law.

d. Medicare and other healthcare coverage if you are 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap)."