HSA PRETAX QUESTION.

[Silver70]

A husband has Family coverage HDHP through their employer. His wife waives coverage at her seperate employer, and receives a cash award per pay for waiving health coverage. The wife would like to take the cash award and contribute that amount to an HSA.

Would the HSA contribution be pretax, or should it be treated as a voluntary deduction, and they can claim that on their taxes?

-John

[Clarifying Health]

Hi John,

Generally, you can claim contributions you made and contributions made by any other person, other than your employer, on your behalf, as an adjustment to income.

IRS Publication 969 is a helpful resource for HSA rules: http://www.irs.gov/pub/irs-pdf/p969.pdf

This article outlines the 2014 HSA Rules: http://www.zanebenefits.com/blog/bid/289564/Health-Savings-Account-HSA-2014-Rules-Requirements

Does that answer your question?

Christina