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Can funds from a Health Savings Account (HSA) be used to pay for Long Term Care Insurance? Can I use my HSA to pay for long term care insurance?
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Yes, you can use funds from your Health Savings Account (HSA) to pay for long term care insurance premiums. Long term care insurance premiums are considered an eligible expense for HSA funds. According to the Internal Revenue Service (IRS), long term care insurance premiums are considered a qualified medical expense under the HSA guidelines. This means that you can use HSA funds to pay for long term care insurance premiums on a tax-free basis, as long as the premiums do not exceed the IRS's annual limits for eligible long term care insurance premiums. It's important to note that the IRS sets specific limits on the amount of long term care insurance premiums that can be paid using HSA funds, so it's advisable to consult with a tax professional or financial advisor to ensure compliance with IRS regulations. Additionally, it's essential to verify the specific details of your HSA plan to confirm that long term care insurance premiums are an eligible expense. Using HSA funds for long term care insurance can provide tax advantages and help individuals plan for potential long term care needs.
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