Under the rules of an HSA, it states that an HSA owner may withdraw funds from an HSA to pay for the qualified medical expenses of yourself, your spouse or a dependent without tax penalty.

Does this mean you can pay for their expenses even if they are not covered under your HDHP or does the HDHP have to cover the spouse or dependent in order to pay for their expenses?

According to the Department of Treasury's "All about HSAs" document, dated February 1, 2005, tax free distributions can be taken for qualified medical expenses of (1) the individual covered by the high deductible plan, (2) spouse of the individual (even if not covered by the HDHP), and (3) any dependent of the individual (even if not covered by the HDHP).

Thanks Frenchie, that is the way I was reading it, but it doesn't make sense to me! Oh well, neither does alot of other things.

By the way, do you have a cite to this document because I want to be able to show those who question that it states even if not covered by a HDHP......or is that in parenthesis your add?


Nevermind.....thanks anyway, but I found it......I was on the IRS website and not the Treasury website. Thanks so much for the direction!!!! Just what I needed.