Setting up Section 105 compensation for employee-spouse with HSA

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Topic Author
ai_3_us
Posts: 162
Joined: Mon Jan 09, 2017 6:53 pm

Setting up Section 105 compensation for employee-spouse with HSA

Post by ai_3_us »

I have an HSA through my employer that is covering both me and my spouse who is also on my insurance. I also do contracting work on the side and this year hired my employee-spouse to do some things for me (legitimate employment). I read that I can reimburse my employee-spouse's medical expenses for all compensation through a "Section 105" plan. From what I can tell this is completely legitimate, but I also read somewhere else that I cannot offer a Section 105 payment plan to someone who is covered by an HRA. I am not sure if this applies for an HSA too. Further, the HSA is mine and not my spouse's.

Does anyone know if there is any issue with this? I can't see explicitly where there is, but I want to make sure I'm doing it right before I do it, hopefully without hiring a tax professional for a 15 minute conversation.
Topic Author
ai_3_us
Posts: 162
Joined: Mon Jan 09, 2017 6:53 pm

Re: Setting up Section 105 compensation for employee-spouse with HSA

Post by ai_3_us »

Ah, it appears I have finally asked a question bogleheads can't answer!

To make the community feel better, know that I have contacted 15 attorneys, all of whom said they cannot help me with this issue :)
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