HSA Confusion

Your divorce and child custody agreements are final, get practical tips for moving on with your life after divorce.

Re: HSA Confusion

Unread postby DadWantsMore » Thu Feb 23, 2017 7:42 am

My interpretation of what he is saying is that the 650 is:

Total deposited into hsa - total that WOULD be deposited for a single employee = $650 per quarter?
DadWantsMore
10+ Posts
 
Posts: 36
Joined: Thu Jan 26, 2017 9:37 am

Re: HSA Confusion

Unread postby hoosier_dad » Thu Feb 23, 2017 8:35 am

One indicator of how a CA court might view an HSA account as part of a High Deductible Health Plan is to look at CA caselaw. The only mention is a 2011 decision from the Court of Appeals, 5th District.

Ebaugh was ordered to continue to contribute $450 per month to a health savings account (HSA), with the funds to be used to pay the children's uninsured medical costs as their medical insurance was only for catastrophic injuries. The parties were ordered to pay one-half of any uninsured health care expenses that exceeded the amount in the HSA.

https://scholar.google.com/scholar_case?case=1062527315990892346&q=%22health+savings+account%22&hl=en&as_sdt=4,5

In the case above the court viewed the HDHP as more of a safety net, with the HSA funds to be used to pay uninsured health care expenses before the parents began splitting the expenses once the HSA amount was spent.
User avatar
hoosier_dad
Moderator
 
Posts: 4731
Joined: Fri Jan 22, 2010 10:02 am

Re: HSA Confusion

Unread postby Fatheroffour » Thu Feb 23, 2017 8:49 am

HD is typically on the money. I'll add this strategy tip.

Dont make the other sides case for them.

It should be noted that the healthcare landscape is in flux and has changed since 2011, and its been promised that it will be further changed any day now by our current Comrade in Chief.
User avatar
Fatheroffour
Moderator
 
Posts: 35879
Joined: Fri Oct 12, 2007 8:37 am
Location: Top of the world

Re: HSA Confusion

Unread postby hoosier_dad » Thu Feb 23, 2017 9:45 am

Ron, this really boils down to two options, and the approach you take is going to be up to you.

I've dealt with an HSA for 6+ years after my divorce, and will provide the two options with my numbers as an example:

HSA Summary
- Employer deposit = $1,600 per year ($800 for me, $800 for children)
- Annual deductible = $2,600 per year (traditional health care kicks in once $2,600 is spent on healthcare each year)


Option 1
- Consider all health care expenses up to $2,600 per year as uninsured expenses
- Keep all HSA funds including deposits for your own use, ex gets no HSA funds

Although there is caselaw showing that HSA funds are shared, your risk of getting punished in court is slim to none because there is no decree wording on sharing HSA funds. The downside is the negative impact on your relationship with your ex, and potential legal fees to have this issue clarified if she takes it to court.

Option 2
- Pay the first $800 of child care expenses with HSA funds per year, then consider health care expenses from $800 - $2,600 per year as uninsured expenses
- HSA funds designated for the children are shared each year

IMO Option 2 makes the most sense even if your decree doesn't clearly specify this type of agreement.


The decision is up to you. I'll add this disclaimer, I started at Option 1 and moved to Option 2 over time as my relationship with my ex improved.
User avatar
hoosier_dad
Moderator
 
Posts: 4731
Joined: Fri Jan 22, 2010 10:02 am

Re: HSA Confusion

Unread postby Minerva » Fri Feb 24, 2017 3:12 pm

My relationship with my ex sucks and I consider 100% of the money that comes out of my HSA as uninsured expenses. Why? Because 100% of it would go into my pocket if they didn't get the expense. Even the money deposited by your employer is yours to use in the future or pull out at retirement.

You can be generous at your discretion, but I'd never make the case that she is entitled to any of the money. If it's not a good deal for her, let her get a job and insure the kids...
Minerva
100+ Posts
 
Posts: 318
Joined: Fri Jul 26, 2013 9:57 am

Re: HSA Confusion

Unread postby RonSwanson » Sun Apr 23, 2017 3:48 pm

Argh - I just hate bringing up any of this type of stuff to her because it always causes a battle. The latest is that she claimed child care expenses for 2016 on her taxes even though the MSA says that I get to claim both children as dependents beginning in 2016. That is to continue until the children can no longer be claimed as dependents. When I e-filed my return, it was kicked back as rejected because she already used D's SSN. I emailed her and told her that she completed her taxes wrong. She said she didn't because it was accepted when she e-filed. ~sigh~

In an attempt to have her sign form 8332, she agreed to go to a tax preparer, who said that I was correct, and she would have to amend her return. The tax preparer added that she didn't have to sign 8332, and that we should each get to claim a child...it's great when a non-legal professional comments about something they clearly know nothing about, ain't it? :)

She is going to re-file her taxes next week. I have filed an extension for mine. Her last email said that it's not fair that I get to claim both on my taxes and she wants to revise the MSA. She reminded me that because her income is 0 (she's a student, and was fired from her part time job), she gets deals for the kids on bus passes and day care, and thinks revising the MSA will make it even.

I didn't respond, because my reply will be explaining that she hasn't been paying her share of health care, which will probably launch WW3 even if I'm in the right.

So...can anyone foresee any issues after I reply to her? Can you see anything coming back to bite me?

As always, many thanks to any and all replies.
RonSwanson
10+ Posts
 
Posts: 30
Joined: Sat Apr 23, 2016 2:32 pm

Re: HSA Confusion

Unread postby Havalu7 » Sun Apr 23, 2017 6:55 pm

Dude I have no legalbegal advise for you other than you did the right thing by filing the right paperwork in the first place.

Hang in there and hopefully she will (like we all wish) become a normie and stop fighting you every step of the way. If it's any solace the people who are nasty and holding on to bitterness usually sucuumb to such.
This is sad when there are kids involved but when you attempt to posion someone else it usually you who ends up drinking the poison.

We can only hope and pray that the kid(s) in your case and mine see the mothers poisonous ways and chose not to become like her.
”No is a complete sentence” Unknown
User avatar
Havalu7
1K+ Posts
 
Posts: 1303
Joined: Wed Jan 27, 2016 10:43 am

Re: HSA Confusion

Unread postby Tom Kirkpatrick » Sun Apr 23, 2017 9:08 pm

RonSwanson wrote:The latest is that she claimed child care expenses for 2016 on her taxes even though the MSA says that I get to claim both children as dependents beginning in 2016.
I presume you're not talking about deductions for Head of Household, Correct??

Read the following thread on tax deductions, HoH in particular:

viewtopic.php?f=8&t=78914&p=898917&hilit=tom#p898917

Tom
Everyone is entitled to my opinion. - Maxine™
Tom Kirkpatrick
5K+ Posts
 
Posts: 7108
Joined: Thu Mar 03, 2005 11:31 pm
Location: Pacific NW

Re: HSA Confusion

Unread postby RonSwanson » Mon Apr 24, 2017 1:12 pm

Yes, MSA states that I get to claim the children, so I filed HOH. She may have to, but she was in error if she did.
RonSwanson
10+ Posts
 
Posts: 30
Joined: Sat Apr 23, 2016 2:32 pm

Re: HSA Confusion

Unread postby WCD7399 » Mon Apr 24, 2017 2:11 pm

I have a HSA. IT has a HSA and a High deductible insurance plan. Its 4k family deductible. Does your come with a high deductible plan?
My MSA says that I am to provide insurance for the kids and we split uninsured cost. My work contributes 2k to MY HSA every year. That account is NOT "health insurance".
Result - My ex has to pay 50% of all health care costs for the kids until the deductible is meet. The fact that i use the account my employee contributes to pay my half is completely different.
She has complained about it -I did ask my lawyer about it, whose general thought was I was following the MSA and my Ex was free to negotiate something else, including providing her own insurance for the kids.
A few times, esp when we have a big bill, she compains and says she thinks its unfair...but then thats it.

Flip side -2 years ago I had a accident on my shoulder. Between Hospital visits, MRI, Sugery, Rehab, my family delectable was meet in March. She also enjoyed the 9 month of basically zero medical expenses that yar.
WCD7399
100+ Posts
 
Posts: 470
Joined: Wed Jun 16, 2010 7:57 am

PreviousNext

Return to After The Divorce is Final – Moving On

Who is online

Users browsing this forum: Yandex [bot] and 2 guests