Individuals Who Are Eligible for Medical Services during IHS Facilities May Still Participate in HSAs

The IRS on Feb 1 explained that people who are authorised to accept medical services during Indian Health Service (IHS) comforts are not automatically unfit from creation tax-free contributions to health assets accounts (HSAs) (Notice 2012-14).

Under Sec. 223(c)(1), an authorised particular for HSA functions is, for any month, an particular who is lonesome by a high-deductible health devise on a initial day of a month and is generally not lonesome by any other health plan. The IHS, run by a U.S. Department of Health and Human Services, provides health services to American Indians and Native Alaskans who go to federally famous tribes.

In Notice 2012-14, a IRS provides that an particular who is authorised to accept medical services during an IHS facility, though who has not indeed perceived services during a trickery during a prior 3 months, is an authorised particular underneath Sec. 223(c)(1) and might make tax-free contributions to an HSA. Conversely, an particular who has perceived services during an IHS trickery within a past 3 months is not available to minister to an HSA.

The notice also suggests that receipt of coverage available as summarized in QA 6 of Notice 2004-2 (dental and prophesy caring and several forms of surety care) during an IHS trickery would also not invalidate an particular from participating in an HSA.

The IRS has asked for comments on a eligibility order announced in Notice 2012-14. Comments should be submitted by Apr 30.

About Emil Estafanous, CPA
Certified Public Accountant (CPA) Tax Professional committed in representing taxpayers and resolving their tax problems.

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