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Discussion Forum Index --> Tax Questions --> Health Savings Account
Lois (talk|edits) said:
| 24 January 2006
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| A client has a HSA and wants to pay his qualified long-term insurance contract with these funds. Can he make the entire payment with these funds or would he be limited to the limitations for deductibility?
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Riley2 (talk|edits) said:
| 24 January 2006
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| A Qualified LTC premium is a qualified expense.
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Lois (talk|edits) said:
| 24 January 2006
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| Yes, but if they paid for the LTC without HSA money they would be limited to the amount they could itemize depending on their age. It seems to me that there would be a limitation through the HSA.
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Captcook (talk|edits) said:
| 24 January 2006
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| Lois, are you referring to the 7.5% floor? There is no such limitation for HSA expenses.
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Riley2 (talk|edits) said:
| 25 January 2006
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| Sec. 223 benefits from an HSA are limited by Sec. 213(d). See Sec. 223(d)(2). Since the LTC limits for medical insurance deduction are contained in Sec. 213(d), the limits would apply. Any reimbursed amounts in excess of the Sec. 213(d)(10) limits must be included in gross income. See Notice 2004-50, Q & A 41.
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Riley2 (talk|edits) said:
| 25 January 2006
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| The short answer to your question is that an individual age 40 or less would be limited to $280 on HSA distributions used to pay LTC premiums.
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Lois (talk|edits) said:
| 25 January 2006
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| That's what I thought - - thank you. My (and my husband's) LTC premium is $7,500 per year so I couldn't possibly see that a HSA could potentially pay the entire amount.
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Artlander (talk|edits) said:
| 12 October 2007
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| Why is it that a person who has no insurance cannot start HSA. I mean afterall having no insurance is the highest deductible plan a person can have.
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JimS ME (talk|edits) said:
| 12 October 2007
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| Ask Congress...we simply live within the rules.
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Kevinh5 (talk|edits) said:
| 12 October 2007
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| Art, every American child born should have $5,000 put into his HSA at birth.....
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Tango (talk|edits) said:
| 10 November 2007
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| Can anyone point me to the location where the code specifies whether eligible expenses must be incurred after the setup of the HSA? Or do you read the 2006 act Sec 305, which eliminates prorating the deductible amount as also making expenses incurred anytime during the year as eligible?
Thanks.
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