We all love our HSAs and over the years, they have been instrumental in saving for medical expenses for those unforeseen events. And there’s no reason not to continue to enjoy those benefits, with a nice tax savings. For beneficiaries, sometimes those savings can reveal a tax responsibility for non-spouses.
USA Today asked Derek Miser, Managing Partner for Miser Wealth Partners, to weigh in on the subject. Essentially, there can be a substantial tax burden for those who were never married to the deceased.
Derek advises to do your homework and before you name beneficiaries of most everything, make sure there are not any hidden tax burdens. In the case of HSAs, many times, the marital history, location and relationship will determine tax liability. The two page article below is a wealth of information on this very topic.
