HSAs

The One Big Beautiful Bill Act (signed July 2025) made several 2026 changes: it expanded HSA eligibility (individual-market bronze/catastrophic plans, direct primary care, permanent telehealth), raised the dependent-care FSA limit to $7,500, and enhanced the dependent-care tax credit to a 50% top rate.

Short answer: Yes. If an employer allows HSA contributions through payroll on a pre-tax basis, they must allow employees to change their HSA contribution elections during the year, generally at least on a monthly basis.

Short answer: Generally no. Membership in a health care sharing ministry is usually treated as disqualifying other coverage for HSA purposes and does not qualify as an HSA-eligible health plan.

Short answer: Married couples with family HSA coverage can split contributions in any way they choose, as long as the combined total stays within the annual family limit and catch-up contributions go into each spouse’s own HSA.

Short answer: It depends on who you name as beneficiary. If your spouse inherits the HSA, it becomes their HSA. If anyone else inherits it, the account ends and the full value becomes taxable income.

Short answer: Yes, but only once in your lifetime. This is called a Qualified HSA Funding Distribution, and the amount transferred counts toward your annual HSA contribution limit.

Short answer: Yes. All HSA contributions (made by you, your employer, or anyone else) count toward the same annual IRS limit.

Short answer: Yes. You can change your HSA contribution amount at any time during the year, even if contributions are made pre-tax through payroll, as long as you do not exceed the annual IRS limit.

Short answer: You should keep HSA receipts for as long as the account is open, and at least three years after the tax return that reported the distribution, since you may need them to prove the expense was qualified if the IRS asks.

Short answer: Yes. Dental and vision care are qualified medical expenses, so you can use HSA funds tax-free for many related services and products.

Short answer: Yes. You can use HSA funds to pay for qualified medical expenses for your spouse and tax dependents, even if they are not covered under your health plan.

Short answer: The amount is taxable, and if you’re under age 65, it’s also subject to a 20% penalty, unless you’re able to correct or offset the mistake within the same tax year.

Yes. Beginning in 2026, a qualifying Direct Primary Care arrangement no longer disqualifies you from contributing to an HSA, and DPC fees within the monthly limits are themselves HSA-eligible expenses, as long as you otherwise meet HSA eligibility rules.

Short answer: Maybe. If you received non-preventive medical care from the VA in the past three months, you generally cannot contribute to an HSA, unless the care was for a service-connected disability.

Yes, but the combined total must stay within the family limit. Each spouse must have their own HSA to make catch-up contributions after age 55.

Yes. Once you are enrolled in Medicare, you can use HSA funds tax-free to pay for Medicare Part A, Part B, Part D, and Medicare Advantage premiums, but not Medigap premiums.

Short answer: Yes. After age 65, you can use HSA funds for non-medical expenses without the 20% penalty, but those withdrawals are still subject to income tax.

Short answer: Yes. You can move HSA funds to another HSA using either a trustee-to-trustee transfer or a 60-day rollover, but missing the rollover deadline can make the distribution taxable.

Short answer: Many HSA providers allow you to invest your balance in options like mutual funds, index funds, or ETFs, with investment earnings growing tax-free when used for qualified medical expenses.

Short answer: Yes. HSA funds are taxed if they are used for non-qualified expenses, and if you are under age 65, an additional 20% penalty generally applies.

Short answer: You do. HSA withdrawals are not monitored in real time, so it is your responsibility to ensure funds are used only for qualified medical expenses.

Short answer: Yes. You can reimburse yourself for qualified medical expenses from a prior year as long as the expense occurred after your HSA was opened and you kept proper documentation.

Short answer: Usually no. HSA funds generally can’t be used tax-free for health insurance premiums, except for limited situations like COBRA, Medicare, long-term care insurance, or coverage while receiving unemployment benefits.