Eligibility for medical services at an Indian Health Service (IHS) facility does not disqualify an individual from being able to establish a health savings account (HSA) — but actually receiving such services can. That is what the IRS said in Notice 2012-14, which it issued on Feb. 1.
The IRS said that individuals who are eligible to receive IHS services are also eligible under Code Section 223 to establish and make contributions to HSAs.
The IRS also said, however, that generally individuals are not eligible to establish an HSA if they do receive IHS services during the three months before the date on which they seek to establish the HSA. But that is not a blanket prohibition — the IRS said that individuals who receive services through the IHS that are permitted under Notice 2004-2 still can establish an HSA.
These services include the following:
- dental care;
- vision care;
- well-baby visits;
- weight loss treatments; and
- tobacco cessation programs.
Public Comments Invited
The IRS has requested comments on the eligibility rule it announced in Notice 2012-4. Comments must be submitted by April 30, 2012.
Submissions may be sent electronically to Notice.firstname.lastname@example.org; include the notice number (Notice 2012-14) in the subject line.
Additional information regarding submitting comments is available by calling (202) 622-7180.
Additional information about Notice 2012-4 is available by calling its principal author, Leslie Paul of the Office of Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities), at (202) 622-6080.