Welcome to the
MoneyAdvice@Work® Newsletter!

Check Out Our 2022 Webinars

We’re excited to announce that the 2022 webinar registration links are now active. We’ll cover a variety of financial topics throughout the year, so there’s sure to be something for everyone. Click here to view the webinar topics and to register. Have a scheduling conflict? As always, we’ll post the recorded sessions on our website as soon as possible after the air date so you won’t miss any of the fun.

Should you invest in Bitcoin?

It seems like everybody’s talking about Bitcoin these days, and for good reason. But, before investing, there are things you should consider. Click here to learn more.

Catch-Up on the
Capital Markets

We all know that investing can be a wild ride. It’s difficult to keep track of everything that’s going on in the marketplace. Here’s your chance to catch up. Click here to review this quarter’s market headlines.

Bitcoin, other forms of cryptocurrency are here for the long haul

Interest around cryptocurrency continues to grow; however, investors should be cautious when jumping into this rapidly changing market. Read the full article here.

My wife and I have both been married before, and each of us have a child by our previous marriage.  We are each covered under our own separate High Deductible Health Care Plans and we each contribute to our own HSA.  Her son is 20 and a full-time student and covered under her health plan.  I have a son who is also 20 and is not a full-time student and is covered by my health plan.  For whose medical expenses can we use our HSA balances?

That is a great question and a chance to make a costly mistake.  Since there is a strong tax component related to who is and isn’t a dependent, you should talk with a qualified tax advisor.

Here are two sources that will provide information related to HSA plans.

1)     Publication 969 (2020), Health Savings Accounts and Other Tax-Favored Health Plans | Internal Revenue Service (irs.gov)

2)     Publication 502 (2020), Medical and Dental Expenses | Internal Revenue Service (irs.gov)

Just because your son is covered under your health care plan, does not mean you can use your HSA to pay for his medical expenses.  For a distribution from your HSA to be qualified (and not taxed and penalized) it must be used on medical expenses for a person who could be claimed as a dependent on your taxes.

Qualified Medical expenses are listed in Pub 502, and may be qualified if spent on your spouse, dependent, qualifying child, qualifying relative, or a decedent.

In this case, a qualifying child is a “child” or “stepchild” who was under age 19, under age 24 and a full-time student, or any age if permanently and totally disabled. 

As a result, assuming her son is a dependent (under age 24 and still in school) and yours is not (over 19 and not a student), you can use your HSA to pay the expenses for you, your spouse, and her son.  She can use her HSA to pay the expenses for herself, you, and her son.

Be careful – Notice that while your son is covered under your health plan, you may not pay for his medical expenses with your HSA.  He could, however, open and contribute to his own HSA plan since he is covered by a high deductible health plan.

Talk with your qualified tax advisor to verify exactly who can be considered your dependent.

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