Your HSA can be passed onto others upon your death. How it gets passed on depends on your beneficiary. Beneficiary = Spouse: in this case, your HSA gets passed along to your spouse and he/she then becomes the legal owner of your HSA account. The account will continue to operate as a tax-free account similar to if you were still alive and all the rules will still apply. Beneficiary = someone other than your spouse: your HSA account stops being an “HSA” and the fair market value of your account (if there are any investments) are taxable to your beneficiary, but there are no penalties assessed. The amount that ends up being taxable to your beneficiary is reduced by any qualified medical expenses you had prior to your death and up to one year after your death so long as it is paid by your beneficiary. Beneficiary = Your Estate: the value of your HSA is included on your final tax return. Beneficiary = No One Specified: the default will be your HSA will be paid to your spouse if living. If he/she is not living, your HSA will be paid to your estate.
Articles in this section
- What is an HSA?
- How Does an HSA Work?
- What are the benefits of an HSA?
- What are the requirements of an HSA? Am I eligible?
- What designates a qualifying High Deductible Health Plan?
- Do I have to get an HSA if I am on a High Deductible Health Plan?
- How does money get into my HSA account?
- How can I get an HSA?
- If I have a family, can I still have an HSA?
- Can I have a joint-HSA with my spouse?