I’ve recently lost my job and likely to take advantage of COBRA. Because I’d been treating my HSA as a retirement account for a decade, and not taking distributions and investing it, I’ve got significant funds in the account.
In 2024 I moved to a lower deductible health plan that no longer qualified for the HSA.
I’ve read through the IRS Publication 969 and still had a few questions:
1. Am I still eligible to pay for COBRA premiums with my HSA even though the premiums are for a lower deductible health plan?
2. Can I pay for normal health expenses (doctor visits, procedures, etc.) from the HSA while unemployed and using the COBRA lower deductible health plan?
My read on the IRS Pub 969 is that it is only contributions that can’t be made while on the non-qualifying plan. But COBRA premiums can be paid and health expenses can still be reimbursed.
Weird situation - hoping the Bogleheads hive mind can help! Thank you!
In 2024 I moved to a lower deductible health plan that no longer qualified for the HSA.
I’ve read through the IRS Publication 969 and still had a few questions:
1. Am I still eligible to pay for COBRA premiums with my HSA even though the premiums are for a lower deductible health plan?
2. Can I pay for normal health expenses (doctor visits, procedures, etc.) from the HSA while unemployed and using the COBRA lower deductible health plan?
My read on the IRS Pub 969 is that it is only contributions that can’t be made while on the non-qualifying plan. But COBRA premiums can be paid and health expenses can still be reimbursed.
Weird situation - hoping the Bogleheads hive mind can help! Thank you!
Statistics: Posted by LazyFinanceJunkie — Tue Aug 20, 2024 2:25 am — Replies 1 — Views 198