Mistake with HSA question in TT

[ax1lla]

Your step by step question of HSA is contradictory. 

Did Jessica Inherit this HSA?

     it's not common, but we have to check.  If you inherited the HSA from a spouse, answer no.

These statements are circular. First question I should answer no, because Jessica did not inherit it.  The second question says I should answer no if I DID inherit it.

[BillM223]

The problem lies with the IRS.

If someone "inherits" an HSA, this means that because this someone was the beneficiary of the HSA, on the date of the HSA owner's death, the HSA is dissolved, and the value of the HSA is sent to beneficiary (which is taxable). This is what the IRS means by "inherit".

But if the beneficiary if the owner's spouse, then the HSA is not dissolved on the date of the owner's death, but instead it becomes the spouse's HSA. The IRS does not consider this an inheritance, because it is just a change of names on the account.

So, in the eyes of the IRS, the spouse does not inherit the HSA, hence the counter-intuitive wording of the screen.