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Thank you Opus17 for a very comprehensive response. I really appreciate that you took the time to write that up and explain the different tax considerations so clearly. I agree that it seems better to put the money into an account in her name. To answer your question, the insurance payment is 100% for her injuries, and we did not use any pre-tax money (HSA or FSA) to pay medical expenses.
‎November 20, 2020
6:19 PM