HSA....Q and A!
You know how much I love "question and answer" guidance. (Here's an earlier post that lists some of my favorite FAQ's.) Yesterday, Treasury released this "question and answer" guidance document that addresses Health Savings Accounts. Many of the issues addressed seem to be directed toward consumers that use HSAs, but a few touch upon credit union issues. For example...
Q-28.May an HSA account beneficiary authorize someone else to withdraw
funds from his or her HSA?
A-28. Yes. Although an HSA is an individual account, an HSA account
beneficiary can designate other individuals to withdraw funds pursuant to the
procedures of the trustee or custodian of the HSA. Distributions are subject to tax if
they are not used to pay for qualified medical expenses for the HSA account
beneficiary, the account beneficiaryâÂÂs spouse, or dependents.