In cases of divorce, an HSA can be transferred between spouses without taxation. This is not considered a taxable distribution. All HSA rules regarding continued tax-free status, contributions and distributions apply.

Your HSA will no longer be considered an HSA if, upon your death, your estate or someone other than your spouse becomes the beneficiary of your account. Only if the account is transferred to your spouse will it remain an HSA.

No, you are never required to withdraw funds from your account. Your HSA can continue to earn interest and grow until you decide to use the funds. If you never use your funds, your spouse may inherit your account and continue its tax-free status, or your beneficiaries will receive the funds subject to estate taxes.

Your HSA is not subject to COBRA provisions. It is your account to take with you and to maintain as you choose.

While you do not need to continue your qualified HDHP coverage through COBRA, you must maintain qualified HDHP coverage to continue making HSA contributions. You may pay your COBRA premiums with tax-free HSA dollars should you wish.

Yes. Participation in a qualified HDHP is not required to maintain the tax-free status of HSA distributions if funds are used for qualified medical expenses.

If you are no longer eligible to contribute because you are enrolled in Medicare benefits, or are no longer covered by a qualified HDHP, distributions used exclusively to pay for qualified medical expenses continue to be free from federal income tax and state income tax (for most states).

Yes. You always have the option to use your HSA funds however you wish. Distributions used exclusively to pay for qualified medical expenses continue to be free from federal income tax and state income tax, (for most states). You may not, however, contribute to your HSA because you are not covered by a qualified HDHP at this time. Should you enroll in a qualified HDHP at another time, you may then contribute to your established HSA.

At age 65 and older, you may continue to use your HSA funds to pay for qualified medical expenses; for instance, you may use your HSA to pay certain insurance premiums, such as Medicare Parts A and B, Medicare HMO, or your share of retiree medical coverage offered by a former employer. Funds cannot be used tax-free to purchase Medigap or Medicare supplemental policies.

If you use your funds for qualified medical expenses, the distributions from your account remain tax-free, i.e., free from federal income taxes or state income tax (for most states). If you use the monies for non-qualified expenses, the distribution becomes taxable, but due to your age, exempt from the 20% penalty.

Once you are enrolled in Medicare, you are no longer eligible to contribute to your HSA. If you reach age 65 or become disabled, you may still contribute to your HSA if you have not enrolled in Medicare.

Building an account balance in in the event of increased medical expenses related to disability is one of the great benefits of an HSA.

If you become disabled and enroll in Medicare, contributions to your HSA must stop as of the first of the month in which you become enrolled. However, you can continue to use your funds to pay for qualified medical expenses, including payments for Medicare Parts A and B.

If you use your funds for qualified medical expenses, the distributions from your account remain tax free, i.e., free from federal income taxes or state income tax (for most states). If you use the monies for non-qualified expenses, the distribution becomes taxable, but due to your disability, may be exempt from the 20% penalty.

You should choose a beneficiary when you set up your HSA by completing a Master Signature Card. The Master Signature Card is included in your HSA welcome kit or available online for download.

Please note, the signature cards contain a barcode that is personalized for each account holder. As circumstances in your life change, be sure to review your beneficiary designation. You can change your beneficiary by submitting a new signature card.

You may designate one or more persons or entities as death beneficiary of your account (referred to as "Primary Beneficiaries") and may also designate one or more persons to receive your account if no primary beneficiary survives you (referred to as ("Contingent Beneficiaries"). Beneficiary designations can be made only on a form provided by or acceptable to us and will only be effective when filed with us during your lifetime. If you die before you receive all of the amounts in your account, payments from your account will be made according to your beneficiary designation(s).

Your HSA is an inheritable account. What happens to your HSA when you die depends on whom you named as your beneficiary.

Spouse designated beneficiary. If your spouse is your designated beneficiary, the account will be treated as your spouse's HSA after your death. The account will continue to be tax-free for qualified medical distributions. If your spouse is covered by a qualified HDHP, contributions to the account may also be made tax-free, up to maximum annual contribution limits.

Non-Spouse designated beneficiary. If you designate someone other than your spouse as the beneficiary of your HSA.

• The account stops being an HSA on the date of your death;
• The fair market value of the HSA becomes taxable to the beneficiary in the year in which you die (without penalties); and
• The amount taxable to a beneficiary (other than your estate) is reduced by any qualified medical expenses you incurred prior to your death that are paid from the HSA by the beneficiary within one year after the date of death.

Your estate is the beneficiary. If your estate is the beneficiary of your HSA, the value of your account is included on your final income tax return.

No designated beneficiary on file. If you do not designate a beneficiary or if all of the beneficiaries you have designated die before you, your account will be paid to your spouse if he or she is living or if your spouse is not living then your account will be paid to your estate.