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Returning Member
posted Oct 27, 2021 8:39:51 AM

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

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3 Replies
Level 15
Oct 27, 2021 9:22:08 AM
Returning Member
Oct 27, 2021 10:22:10 AM

thank you

Level 15
Oct 27, 2021 12:19:59 PM

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.