HSA Question. Switching health plans

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
catchup
Posts: 219
Joined: Sun Apr 20, 2008 12:15 pm

HSA Question. Switching health plans

Post by catchup » Tue Dec 05, 2017 10:38 am

Hello.
I am planning on removing myself from my family health insurance plan. I have an HSA associated with this high deductible plan. The new high deductible plan for my wife and 3 children will be under her name. I am switching myself to a free plan provided by work which is not HSA eligible.

I will plan to start a new HSA for my wife.

My question is: What should I do with the HSA under my name? Can I still use it for my family’s expenses going forward? Can I transfer it to my wife’s plan?
I only have a couple thousand or so in the account, and it hardly seems worth paying the fee and keeping the account open forever. Chances are I’ll forget it exists when I’m old and senile.
Thanks!

EHEngineer
Posts: 636
Joined: Sat Feb 28, 2015 4:35 pm

Re: HSA Question. Switching health plans

Post by EHEngineer » Tue Dec 05, 2017 10:42 am

First, I have never heard of an employer allowing separate plans for an employee and family. Interesting.

I don't think you can merge the two plans. I believe it's like an IRA. However you can use it to pay/reimburse expenses until the account is empty. That's what I would do. Drain it down as expenses occur and let your wife's account accumulate new funds.
Or, you can ... decline to let me, a stranger on the Internet, egg you on to an exercise in time-wasting, and you could say "I'm probably OK and I don't care about it that much." -Nisiprius

Spirit Rider
Posts: 6592
Joined: Fri Mar 02, 2007 2:39 pm

Re: HSA Question. Switching health plans

Post by Spirit Rider » Tue Dec 05, 2017 11:00 am

The OP said the plan would be under her name, meaning it would be from her employer.

Just make sure that you do not enroll/accept a general purpose FSA and/or HRA in conjunction with your free plan at work. If as most plans do, it allows reimbursement for for your spouse, she will be ineligible for an HSA.

As EHEngineer said you can use your HSA to pay any of the qualified medical expenses of you, your spouse and your dependents. You can use those to spend it down. Just be aware that after 18 months of a $0 balance in any HSA, the first date for reimbursements for qualified medical expenses of a future HSA will be reset to the establishment date of that HSA.

catchup
Posts: 219
Joined: Sun Apr 20, 2008 12:15 pm

Re: HSA Question. Switching health plans

Post by catchup » Wed Dec 06, 2017 12:31 pm

Thanks for the good information. I’ll use the current HSA to pay down future expenses and then close it out.

Post Reply