Rulings On HSAs, HRAs
The Internal Revenue Service has come out with two rulings of interest to insurance agents and brokers with an interest in the new personal health accounts.
One of the rulings, IRS Revenue Ruling 2005-25, applies to married men and women who want to set up health savings accounts.
To qualify to set up an HSA, a taxpayer must buy high-deductible health insurance.
Elizabeth Purcell, an IRS tax-exempt entities specialist, has held in 2005-25 that a taxpayer can own an HSA even if a spouse has the wrong kind of health insurance or no health insurance, as long as the taxpayer who sets up the HSA is not covered by the wrong kind of health insurance.