I have an S Corporation. I am the only employee and don't plan on hiring anyone else. I am reading up on HSA accounts and it is looking attractive to me. But, I am not sure if IRS allows me to do what I am planning to do.
- Write up a document stating that my company deposits $nnn every year for every employee into a HSA account.
- Open a high deductible insurance plan for my family
- Open a HSA account with, say, Bank of America
- Deposit $nnn from the company's bank account directly into my B of A HSA account
- At tax time, $nnn will be treated as an expense and will be 100% tax free
Would it work that way?
(`There is also a product called small business HSA account, but I don't feel comfortable taking that path as it looks way too complex for me.)
Thank you for your time.
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