Can COBRA be covered by HSA IRS 2018?

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COBRA continuation and HSA alignment basics

If you're considering enrolling in a Health Savings Account (HSA), you may have questions about what expenses can be covered by it. One common query is whether COBRA (Consolidated Omnibus Budget Reconciliation Act) can be covered by HSA according to the IRS regulations of 2018.

COBRA allows individuals to continue their employer-sponsored health insurance for a limited time if they leave their job. However, it's essential to understand how it aligns with your HSA.

2018 IRS rules for COBRA HSA reimbursement

According to the IRS guidelines in 2018:

• COBRA premiums can generally be paid with HSA funds;
• COBRA coverage can be considered an eligible expense for HSA reimbursement;
• However, only if you're not enrolled in Medicare, can't be claimed as a tax deduction, and meet all other HSA criteria.

Stay updated and general eligibility note

It's crucial to stay updated with any IRS updates regarding HSA and expenses coverage. Always consult a tax professional for personalized advice.

When navigating the world of Health Savings Accounts (HSAs), understanding the nuances around COBRA and eligibility can be vital. Many might wonder, 'Can my HSA help me with my COBRA premiums?' The answer is generally yes!