The following sections are a comprehensive guide to the sometimes confusing set of rules regarding use of health savings accounts.
The most basic confusion I encounter when answering questions for people on this site is mixing up the rules between making a tax-free contribution to an account and how you can use the money once it is in the HSA account. There is actually a strong dividing line between the two.
There is a very rigid set of rules regarding which individuals can open and contribute to an HSA and how much they can deposit each year. HSA contribution eligibility is all about carrying the right insurance coverage at the right time.
Once the money is placed into the HSA, the rules shift dramatically. Now coverage does not matter. Using your HSA to pay for medical expenses tax-free is all about paying the right expenses at the right time for people who are related to you in the right way, either through marriage or through your tax return.
For more in-depth content buy the HSA Owner’s Manual by Todd Berkley or ask a question specific to your situation with Ask Mr HSA custom answer service.