Rmsa

[spddmn77]

Can anyone tell me if a Retiree Medical Savings Account funded soley by employer is exempt in Chapter 7 bankruptcy?

[justbroke]

You will probably need to find an exemption to caver these funds. If your state has an exemption specific to HSAs then you could certainly use that. Otherwise, you may need to use your wildcard exemption to protect any funds in this type of HSA. This would be an excellent question to have answered during a "free" consultation with several local attorneys that understand exemptions for your District/State. As for as whether it is employer or employee funded, that's a distinction that may also be specific. Some questions would be whether the funds are yours (vested) or whether they still belong to the employer.

(In Florida, we have a specific exemption for HSAs under F.S. 222.22(2). You would either find your State's specific exemption or rely on a wildcard.)

I'm sorry that I don't know specifics for Kansas. I would still ask you to do the prudent thing and determine the exemption with a local attorney. If you have significant money in the RMSA (HSA) and depend upon that amount, I highly recommend speaking with local attorneys over reading my opinion. I am in a State that protects health savings accounts. I do not believe Kansas is such a State.