HSA & Employer Reimbursement

[Guest teepee]

I have an HSA HDHP plan from a previous employer, which I am now enrolled in through COBRA coverage. A tentative new employer has offered me a position but does not offer health coverage, so I will continue with COBRA until it expires. The new employer, however, mentioned that in lieu of a group health plan, they offer their employees a $200/month non-taxable "reimbursement" to cover the premiums employees pay on their own individual plans. Would this non-taxable "reimbursement" in any way restrict the amount of money I would be able to contribute to my HSA for the year?

Thanks for your help.

[J Simmons]

No, that $200/mo would not restrict the amount you can contribute to your HSA, unless you used that $200/mo to pay for premiums of health insurance that did not qualify as HDHP for HSA contribution purposes.

[Guest Ira Hayes]

No, that $200/mo would not restrict the amount you can contribute to your HSA, unless you used that $200/mo to pay for premiums of health insurance that did not qualify as HDHP for HSA contribution purposes.

Folks, the $200 reimbursement is clearly taxable (it has been since IRS outlawed ZEBRAs in 1984).. It just has a different name now.