March 13, 2020
A Health Savings Account (HSA) can be a powerful tool for financing health care expenses while supplementing your other retirement savings vehicles. And it offers estate planning benefits to boot. The estate tax implications of inheriting an HSA differ substantially depending on who receives it, so it’s important to consider your beneficiary designations. If you name your spouse as beneficiary, the inherited HSA will be treated as his or her own HSA. That means your spouse can allow the account to continue growing and withdraw funds tax-free for his or her own qualified medical expenses. Contact us for more information.