I run my real estate investment business through my own S-corporation. I get health insurance coverage from my spouse's employment. I'm not looking for legal advice on how to set things up or the limits on anything.
What I am asking is whether I can set up a health savings or health reimbursement account through my S-corporation if I don't buy my own insurance through my corporation. I'm looking for a way to cover medical expenses, such as deductibles, that my family still incurs with my spouse's employer-sponsored plan. We currently have an HSA through my spouse, since we're on a high-deductible plan, but we're considering switching to a lower-deductible plan that doesn't allow her to have an HSA.
Do you have a good CPA? I'd ask your CPA, or find a good one that is also a Real Estate Investor. I too have an HSA, but unlike the SDIRA, you add after tax money to our HSA and then just pull it out as needed, not needing to show receipts to the manager of the HSA, taking us on our word and then we get to write off the $6k+ per year too.
Both my wife & I have HSA's that we take the maximum tax advantage of. She does her's through her S-Corp I pay my own as my LLC is a single member entity.
The determining factor was the high deductible plans. So I would assume if you're planning to switch to a lower-deductible (family) plan you would be excluded from the tax advantaged HSA option. This happened to my son, whose company opted for a lower-deductible yet high co-pay plan, so their previously enrolled HSA's were no longer allowed. It's unfortunate because their co-pays with 2 young kids can be very high, but we pay some of that with our HSA's.
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