We would like to thank your partner for his service.
The IRS said in IRS Notice 2004-50, Q&A-5:
"Q-5. If an otherwise eligible individual under section
223(c)(1) is eligible for medical benefits through the Department of Veterans
Affairs (VA), may he or she contribute to an HSA?
A-5. An otherwise
eligible individual who is eligible to receive VA medical benefits, but who has
not actually received such benefits during the preceding three months, is an
eligible individual under section 223(c)(1). An individual is not eligible to
make HSA contributions for any month, however, if the individual has received
medical benefits from the VA at any time during the previous three
months."
Note that per IRS Notice 2008-59 (Q&A-9),
the three-month limitation does not apply if the VA benefits were paid for
- Dental
- Vision or
- Preventive Care
Starting in 2016, Congress provided an
additional benefits for veterans: veterans with a service-related disability
are not subject to the three month rule if they receive VA benefits related to
that disability. Note that the IRS further clarified this law with IRS Notice 2015-87,
Q&A-20.
In short, for
veterans - and only for veterans who are eligible for VA benefits - your
eligibility to contribute to your HSA varies month by month based on whether
you actually received health benefits from the VA in the last three months and
what the benefits were for.
In your case,
since you state that your partner has received no VA benefits, then he is
permitted to indicate qualified HDHP coverage as Self or Family (depends on the
HDHP plan) for every month he did not receive the benefits and was under the
HDHP.
And in the future,
bear in mind that the three month rule is waived for certain benefits (vision,
etc. and service-related disabilities).
