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Regulation and Compliance > Federal Regulation > IRS

IRS Rules On HSANon-HSA Marriages

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NU Online News Service, April 13, 2005, 7:24 p.m. EDT

Taxpayers may be able to set up health savings accounts even if their spouses have no health coverage, or the wrong kind of health coverage.[@@]

To qualify to deduct contributions to an HSA, a taxpayer must buy special, high-deductible health coverage.

Some financial advisors have asked about what might happen to a spouse who wants an HSA but is married to a spouse with traditional, low-deductible health coverage.

Elizabeth Purcell, an IRS tax-exempt entities specialist, writes in IRS Revenue Ruling 2005-25 that taxpayers married to spouses with the wrong kind of health coverage can qualify to set up HSAs as long as they themselves are not covered by the spouses’ low-deductible plans.

The IRS has posted the ruling on the Web at //