U.S. Department of the Treasury

(Archived Content)

JS-2368

W ASHINGTON, DC -- The Treasury Department and IRS today announced a ruling confirming that an individual can be eligible to contribute to a Health Savings Account (HSA) even if his or her spouse has nonqualifying family coverage, provided the spouse's coverage does not cover the individual.  In addition, the ruling clarifies how much the eligible spouse can contribute to an HSA in such a situation.

For example, Steve and Mary Jones are married with three children.  Steve has a low deductible family health plan that covers him and the Jones children.  His plan does not qualify for an HSA.  The ruling clarifies that Mary, who is not covered under Steve's family plan, may have her own separate high-deductible health plan that does qualify for an HSA.

HSAs were created by the Medicare bill signed by President Bush on December 8, 2003, and are designed to expand access to health care by helping individuals save for future qualified medical and retiree health expenses on a tax-free basis.  An individual who is covered by a high deductible health plan can make a tax-deductible contribution to an HSA, and use it to pay for out-of-pocket medical expenses. This will help more American families get the health care they need at a price they can afford.  More information about HSAs is available at Treasury's HSA web site: www.treas.gov/offices/public-affairs/hsa/

REPORTS

• A copy of the ruling