From the Hotline: Long-Term Care Insurance Premiums and HSA Funds

Question: May an employee pay premiums for long-term care insurance with health savings account (HSA) funds?

Answer: Yes, an employee may pay long-term care insurance premiums with HSA dollars, subject to limits based on age and annual adjustment. The instructions for Schedule A (Form 1040) generally contain the age/amount limits for the respective year. This information is typically found in the instructions for the respective tax year and the amount range depending on age.

For more information, see Schedule A Instructions (see chart on page A-2). For additional information on permissible HSA distributions, see IRS Publication 969.