Yes, we believe that you may issue the customer’s spouse and son debit cards in their own names. The IRS has confirmed that HSAs may be administered through debit cards and that “an HSA account beneficiary can designate other individuals to withdraw funds pursuant to the procedures of the trustee or custodian of the HSA.” Consequently, your bank may issue HSA debit cards to the customer’s spouse and son in their own names to facilitate their individual access to the account.

For resources related to our guidance, please see:

• Internal Revenue Bulletin: 2008-29 (July 21, 2008) (“Q-27. May an HSA be administered through a debit card that restricts payments and reimbursements to health care? A-27. Yes, if the funds in the HSA are otherwise readily available. For example, in addition to the restricted debit card, the HSA account beneficiary must also be able to access the funds other than by purchasing health care with the debit card, such as through online transfers, withdrawals from automatic teller machines or check writing. Employers must notify employees that other access to the funds is available. See also Notice 2004-50, Q&A-77 and Q&A-79. . . .”)

• Internal Revenue Bulletin: 2008-29 (July 21, 2008) (“Q-28. May an HSA account beneficiary authorize someone else to withdraw funds from his or her HSA? A-28. Yes. Although an HSA is an individual account, an HSA account beneficiary can designate other individuals to withdraw funds pursuant to the procedures of the trustee or custodian of the HSA. Distributions are subject to tax if they are not used to pay for qualified medical expenses for the HSA account beneficiary, the account beneficiary’s spouse, or dependents. . .”)