Wednesday, July 2, 2008

New Guidance on HSAs

By Grace-Marie Turner

Categories: HSAs, etc.

HSAs seem so simple. But even with these straightforward accounts -- a savings account coupled with health insurance -- there seems to be an endless number of questions about them.

The Treasury Department recently provided 28 pages of guidance governing everything from how HSAs interact with Health Reimbursement Arrangements and Flexible Spending Accounts, to whether people can qualify for an HSA if they receive preventive care through the VA, to nuances about employer contributions to the accounts.

This shows that any program authorized by government requires rules and complexity, but the department is to be congratulated for these clarifications.