Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
mdineen
Returning Member

I am a 1099 employee, can I open an health saving account pre-tax with my local bank and use that to pay for health insurance

 
3 Replies
Critter-3
Level 15

I am a 1099 employee, can I open an health saving account pre-tax with my local bank and use that to pay for health insurance

mdineen
Returning Member

I am a 1099 employee, can I open an health saving account pre-tax with my local bank and use that to pay for health insurance

thank you

TomD8
Level 15

I am a 1099 employee, can I open an health saving account pre-tax with my local bank and use that to pay for health insurance

If your work income is reported to you on a 1099-NEC or 1099-MISC instead of on a W-2, the IRS considers you a self-employed individual, not an employee.

 

A self-employed individual can open an HSA, but according to HSA rules set by the IRS, you can only open an HSA if you’re covered by an HSA-eligible high-deductible health plan (HDHP). 

 

This website has more details for you:

https://www.bendhsa.com/hsas-for-small-business

 

As @Critter-3 pointed out, only certain limited types of health insurance can be purchased with HSA funds.

 

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
Dynamic AdsDynamic Ads
Privacy Settings
v