HSA for Unemployed?

For an unemployed person, is there any equivalent to a Health Savings Account that would allow the person to make contributions into a savings account that is deducted "above the line" for tax purposes, then use the account for current-year expenses such as healthcare premiums and deductibles?

A quick read makes it look like HSAs, MSAs, and Flexible Spending Accounts are all designed for employees or self-employed and are funded from employment income.

Reply to
W
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Unemployed individuals are allowed to have an HSA as long as they have a qualifying high deductible health plan. See IRS Pub 969 for more information. Contributions can come from the individual or any other person related or unrelated.

Reply to
Alan

Yup. It's called a Health Sav Contributions to an HSA

Any eligible individual can contribute to an HSA. For an employee's HSA, the employee, the employee's employer, or both may contribute to the employee's HSA in the same year. For an HSA established by a self-employed (or unemployed) individual, the individual can contribute. Family members or any other person may also make contributions on behalf of an eligible individual.

You're eligbile if you have an HDHP, no other insurance, and are not claimed as someone else's dependent. The contributions come off AGI on line 25 of Form 1040.

You can use your HSA to pay for medical expenses but you cannot use it to pay for insurance. Only employers can deduct health insurance premiums which is a big reason our healthcare system is so screwed up.

R's, John

Reply to
John Levine

Of course you deduct health insurance on schedule A, but that is also problematic since it was intentionally sabotaged by setting a 10% of income threshold that no can cross unless they are going through a catastrophic health crisis.

Reply to
W

Note: The age "specified" in section 1811 of the Social Security Act (qualification for Medicare) varies as to whether subsection (1) or (2 or 3) applies. (1) is for old-age benefits - age 65 or over. (2) is for disability - under age 65, but no lower limit specified; requires 2 years on disability. (3) is for end-stage renal disease - no age specified. Section

1811 is found at 42 U.S.C. 1395c.
Reply to
D. Stussy

A quick read makes it look like HSAs, MSAs, and Flexible Spending Accounts are all designed for employees or self-employed and are funded from employment income. ============ Employment has nothing to do with an HSA. All that is required is a high-deductible health insurance policy.

Reply to
D. Stussy

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