So – I got married this weekend. (pauses for applause…thanks)
Being the finance optimizer that I am, I started doing some research on how my health savings account (HSA) can work best with my wife’s “regular” PPO plan. As it turns out, there’s no way I’m going to move over to her plan – both from a financial standpoint, and in principle.
What I did find out though, is that, according to the IRS – I can actually pay for HER medical expenses with my HSA. That’s right….since I”m lucky enough to be healthy at the moment, and won’t likely touch the deductible on my HDHP, if I were to max out my HSA contributions for 2009, I’d have a good bit of money left over.
I have argued several times that the thing to do in this situation is to let that money roll over, gain interest, and accrue for later use. That was before I was married.
Now – I’m able to see another huge benefit. Since we’re married, my HSA account qualifies for her co-pays and other expenses that are qualified, but not covered under her insurance. According to the US Treasury department (ustreas.gov) – “You may withdraw funds to pay for the qualified medical expenses of yourself, your spouse, or dependent without tax penalty.”
So – in case you were on the fence, this HUGE advantage should help push you over. You can make all your family medical care costs tax deductible.
Imagine this scenario – you’re able to max out your contribution each year, and only use a small portion for you and your dependents medical expenses. This means you are able to accrue double your deductible in the account, while making everything your family pays out of pocket tax deductible. At that point, you could, in theory, fill out your deductible AND your family’s deductible with tax-deferred money, and refill the account in the process.
This equates to a very high level of coverage at a low cost – simply by taking steps to optimize your finances. Instead of waiting for government to come in and “fix” things for you, put the control completely in your hands, and get your HSA today!
