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I am 62 and retired. I pay health care premiums thru pension deduction from my previous employer. Can I pay myself back from my HSA without penalty?

I retired last year and do not work this year. Publication 969 says I can pay myself back from my HSA without taxes or penalty and gives the example of insurance such as COBRA.  I am paying full price for my healthcare premium, not the discounted price, with no tax benefit from my previous employer.  Besides COBRA which other insurance programs qualify for this?  My current health insurance is Aetna at the full price premium.
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I am 62 and retired. I pay health care premiums thru pension deduction from my previous employer. Can I pay myself back from my HSA without penalty?

duplicate post

 

"continuation coverage" is a misnomer - what that means is coverage that has a 'hard stop'.  COBRA is 'continuation coverage' because it has a hard stop at 18 months.  If you just took the option of continuing the coverage (with the premium no longer subsidizes) offered by your previous employer , there is no "hard stop' in that coverage - you could presumably continue it for the rest of your life (the fact that Medicare at age 65 would montivate you to stop doesn't fit the arguement as you could decide to continue the private coverage and never pay for Medicare)

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6 Replies

I am 62 and retired. I pay health care premiums thru pension deduction from my previous employer. Can I pay myself back from my HSA without penalty?

As can pay for copayments, coinsurance, deductibles, and other qualified medical expenses. Typically, your health insurance premiums don’t fit into the category of HSA-eligible expenses. However, the IRS allows exceptions for premiums that fall under the following categories: 

If you’re not sure if an expense counts as an HSA-eligible item, call your HSA administrator. They can help you determine if your premiums and other expenses would be approved.

I am 62 and retired. I pay health care premiums thru pension deduction from my previous employer. Can I pay myself back from my HSA without penalty?

Bullet #1 says COBRA premiums and "other healthcare continuation coverage".  I do not work anymore since last August and I am paying my previous employer monthly premiums to continue my healthcare coverage. Doesn't this qualify?  I am paying to continue my healthcare coverage out of pocket with no discount.  Where do I find a list of "other healthcare continuation coverage" or the definition of?

dmertz
Level 15

I am 62 and retired. I pay health care premiums thru pension deduction from my previous employer. Can I pay myself back from my HSA without penalty?

Only health care continuation coverage required by federal law meets this definition:

 26 U.S. Code § 223(d)(2)(C)(i)

I am 62 and retired. I pay health care premiums thru pension deduction from my previous employer. Can I pay myself back from my HSA without penalty?

duplicate post

 

"continuation coverage" is a misnomer - what that means is coverage that has a 'hard stop'.  COBRA is 'continuation coverage' because it has a hard stop at 18 months.  If you just took the option of continuing the coverage (with the premium no longer subsidizes) offered by your previous employer , there is no "hard stop' in that coverage - you could presumably continue it for the rest of your life (the fact that Medicare at age 65 would montivate you to stop doesn't fit the arguement as you could decide to continue the private coverage and never pay for Medicare)

nielsonfam10
Returning Member

I am 62 and retired. I pay health care premiums thru pension deduction from my previous employer. Can I pay myself back from my HSA without penalty?

can i deduct health insurance that i paid with our HRA account

 

BillM223
Expert Alumni

I am 62 and retired. I pay health care premiums thru pension deduction from my previous employer. Can I pay myself back from my HSA without penalty?

No.

 

Payments made from an HRA (did you mean HRA and not HSA?) are tax already advantaged, so you cannot deduct a second time the payment made for your health insurance. That would be double-dipping.

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