Foreign Nationals and HSA

[Guest jpatrick]

Our client is considering adding a HDHP with an HSA as a full replacement. They have a number of foreign nationals who are mostly in higher management positions. Does anyone have experience offering an HSA program as a full replacement with foreign nationals? What experiences/problems did you have? Did you consider offering a seperate non-HDHP for the foreign nationals?

[Guest chloe]

We actually were asked about this by one of our customers. We determined that, while there is no reason the foreign nationals can't be allowed to have the HSA, the contributions and earnings probably would be taxable to them under their own country's tax laws. We couldn't research the tax laws of other countries, but warned the customer that this could cause these individuals some tax headaches. The customer quickly decided to offer them a different plan with no HSA.