HSA account

[amitus84]

Hello there

So am planning to switch jobs in the States. I am a commuter (commute to US for work and stay near the border) and currently don't have a health plan through employer. But if I get a HDHP plan through a new employer, can I contribute to a HSA?

Just a little background, that my spouse works in the States as well and we have American kids. So we both file as US resident because of the Treaty clause of non-discrimination (am not sure what the clause number is). Since we file as resident are we eligible to enroll in HSA plans? Just trying to understand if it's allowed in the treaty and planning ahead if such a benefit from a prospective new employer is of any use for me or not.

Thanks in advance.

[nelsona]

Whether or not you filed as US resident, you are allowed to participate in an HSA, if you have an HDHP. You won't be able to deduct your contributions on your Cdn return however.

What plan does your spouse have. If she is in an HDHP, you both can have an HSA, whether you have your own plan or not.

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[amitus84]

nelsona wrote:
> Whether or not you filed as US resident, you are allowed to participate in
> an HSA, if you have an HDHP. You won't be able to deduct your contributions
> on your Cdn return however.
>
> What plan does your spouse have. If she is in an HDHP, you both can have an
> HSA, whether you have your own plan or not.

Thanks for the feedback nelsona.

If it will be taxed in Canada then yeah there is no sheltered benefit for HSA accounts. I will avoid them.

On another topic, I forgot to declare my previously held HSA and ROTH accounts to CRA when I moved to Canada. What's the recourse for these, are we allowed to report them late and will they still remain tax sheltered?

[nelsona]

First, to clarify, the HSA would be sheltered. It is simply the contributions would not be deductible. But other than that, it works like any other HSA.

Your HSA does not have to be reported to CRA. For your Roth, I would simply send in the election that you should have sent the first year in Canada, and see what they say..
Of course, you should NOT be contributing to a Roth while living in Canada.