Medical Savings Accounts and Insurance Premium Question.

[DawnCt1]

Can you used the pre tax dollars in a medical savings account to pay for medical/dental insurance premiums? We bought DS#3 a medical insurance policy. He graduated in June and is planning his next step. I would like to be able to pay for the premiums with pre tax dollars until he takes it over with a permanent job.

 

[clarabelle]

no-I dont' think so
I have a Health Savings Account (not a Flexible spending one) and we cannot use it to pay premiums.

 

[clarabelle]

http://www.smartmoney.com/personal-finance/taxes/do-you-need-a-health-savings-account-15180/

Dawn -look under the heading "additional withdrawals"

 

[golfgal]

Not for regular health insurance but you CAN for medicare supplements when you are eligible--which is one GREAT thing about Health Savings Accounts--put money in there tax free (pre-tax contributions), money grows tax free and you can use it, tax free, to pay for all kinds of medical things. If you do it right, especially if an employer contributes to the fund, you could have many, many years of insurance paid for when you retire .

 

[CPT Tripss]

IRS says:
Insurance premiums. You cannot treat insurance premiums as qualified medical expenses unless the premiums are for:
Long-term care insurance.

Health care continuation coverage (such as coverage under COBRA).

Health care coverage while receiving unemployment compensation under federal or state law.

Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap).

But, HSA coverage has to be for a spouse or dependant and only if on a family policy for the HSA. If he is over 19 and not a student at the end of the tax year, he isn't a dependant.

 

[DawnCt1]

Oh boo! Thanks everyone. I meant to call it a medical flexible spending account but the answer doesn't change. You guys knew what I meant.