S Corp owner can open an HSA — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

S Corp owner can open an HSA

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Q. You’ve written about the benefits of Health Savings Accounts (HSA). I’m the owner of an S corporation. As the principal, can I use an HSA? J.M., Virginia

A. Yes, HSAs are a viable option for S corp employees, including the principals. To be eligible, your health insurance coverage must come in the form of a high-deductible health insurance plan. “High deductible” means one with a deductible of at least $1,000 and an out-of-pocket maximum of $5,000 for individual coverage, and a deductible of at least $2,000 and out-of-pocket maximum of $10,000 for family coverage. A key HSA attraction: You can roll over unused account funds to the next year.

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