BillM223
Expert Alumni

Deductions & credits

I owe you an apology.

 

I am glad you came back, because I now see that only some health insurance premiums are payable from your HSA. I routinely pay for my long-term care premiums from my HSA (which is permitted), but the Tax Code explicitly says that you can't use HSA to pay for health insurance premiums EXCEPT in these four cases;

 

1. Long-term care insurance.

2. Health care continuation coverage (such as coverage under COBRA).

3. Health care coverage while receiving unemployment compensation under federal or state law.

4. Medicare and other health care coverage if you were 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap).

(see IRS Pub 969)

 

Unfortunately, this does not include Marketplace insurance, even though you normally pay part of it with after-tax dollars.

 

So, unless you qualify for one of the 4 exceptions above, no using HSA funds for your Marketplace policy. Any chance that some of the premiums were paid between jobs while you were on COBRA or on unemployment?

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