Reply To: Basis in HSA on death of spouse

Home Fairmark Forum Retirement Savings and Benefits Basis in HSA on death of spouse Reply To: Basis in HSA on death of spouse

#7347
sselm
Participant

H inherits W’s HSA, consisting of community property as described above. H sells some mutual fund shares in the account. No distributions are made.

H now owes capital gain tax on this sale on his California return (though not on his federal return). The amount of capital gain depends on the basis.

So my original question stands: Is there a step-up in basis in an HSA, as there would be for an ordinary retail account? Thanks.