Hsa irs contribution limits and guidelines hsa bank. These accounts can also be used for expenses that are often controversial, such as abortion procedures and. The internal revenue service irs decides which expenses can be paid from an fsa and they can. Examples of qualified medical expenses the following list includes common examples of hsa qualified medical expenses. Expenses that qualify for reimbursement from tasc hsa. Eligible and ineligible expenses for hsa below is a partial list of permissible expenses reimbursable through a health savings account hsa that are incurred by you, your spouse, or qualified dependents.
The internal revenue service irs decides which expenses can be paid from an fsa and can change the list at any time. This list applies to reimbursement under an hsa as well. Expenses are limited to dental and vision expenses. Hsaeligible expenses are those healthcare related expenses for which you can withdraw funds from your hsa taxfree.
Find out what you can buy with your health account. A health savings account hsa can be an easy and smart way to save money to. Hsahra qualified medical expenses this is a quick reference list of expenses that can be reimbursed from a health savings account hsa or a health reimbursement arrangement hra. Overthecounter medicines and drugs may only be eligible for fsa reimbursement if you have a valid prescription. However, the account beneficiary that establishes the hsa is solely.
Your 2018 guide to the health savings account the motley fool. A list of these expenses is available on the irs website. If you are age 65 or older, the tax penalty does not apply, but the amount. The hsa for life is intended to qualify as a health savings account as set forth in internal revenue code section 223. Hsahra qualified medical expenses this is a quick reference list of expenses that can be reimbursed from a health savings account hsa or a health reimbursement arrangement. Snoring cessation aids vitamins and herbal supplements. Medical expenses allowed as deductions are determined by section 2 d of the internal revenue code. The items in bold are new additions per the cares act. It may take time for vendors to update their systems to recognize these items. Medical expenses include dental expenses, and in this publication the term medical expenses is often used to refer to medical and dental expenses.
Eligible health savings account expense examples there are hundreds of eligible expenses for your hsa funds, including prescriptions, some overthecounter items, health insurance deductibles, and coinsurance. Items that can be used for a medical purpose or for general health and wellbeing are considered dual purpose and are eligible only. You can use the hsa to pay for qualified medical expenses for yourself, your spouse and your dependents before the hdhp deductible is met, as well as for other healthcare expenses. These will show that you used your hsa funds to pay for eligible medical. These lists are not allinclusive, and are subject to change by the irs. A letter of medical determination may be requested at any time for additional clarification and may require additional processing time. See the common overthecounter otc medications section below for examples. Your handy list of fsa eligible expenses pdf employers. Feminine hygiene products are now qualifying medical expenses. This list is not intended to be exhaustive and should only be used as a general guide.
Letter in addition to the required detailed receipt, you will. A health savings account is an individually owned taxexempt account established exclusively for the purpose of paying for qualified medical expenses. Support center eligible expenses calculators popular forms wageworks card fsa store manage account how to videos hsa store. Letter in addition to the required detailed receipt, you will need to submit a letter of medical necessity, signed by your doctor, to verify this expense is a medicallynecessary treatment for a known medical condition. The amount you spend will be federal income taxfree.
The expenses must be primarily to alleviate or prevent a physical or mental defect or illness, including dental and vision. While many common expenses like office visits, prescriptions, labs and xrays are covered, were sorry to say a few, like dancing lessons and cosmetic surgery, are not. Eligible health savings account expense examples there are hundreds of eligible expenses for your hsa funds, including prescriptions, some overthecounter items, health insurance. Any expenses that are listed as potentially eligible may require additional documentation such as a letter of medical necessity pdf.
Section 2d eligible expenses if you have any questions on what constitutes a section 2d eligible expense, please contact our customer relations team. Eligible limited expense health care fsa lex hcfsa expenses. Some pharmacies can even tell you what purchases are or are not covered by the fsa, so feel. When you, your spouse, and your dependents have qualified medical expenses that arent covered by your health care plan, you can use your hsa money taxfree 1 to pay for them. This includes deductibles, coinsurance, prescriptions, dental and vision care, and more. Medical expenses such as deductibles and coinsurance payments required under your medical plan qualify as eligible expenses. Apr 11, 2020 hsa eligible expenses span beyond care and treatment provided by medical professionals. If you are 65 or older, the tax penalty does not apply, but the amount must be reported as taxable income. Readytouse tools to help you make the most of your wageworks benefits. A consumers guide to the health savings account hsa.
Our pdf download is an extensive list of common eligible items including items that will require a doctors prescription. You can use the hsa to pay for qualified medical expenses for yourself, your spouse and your dependents before the hdhp deductible is met, as well as for other healthcare expenses allowed under section 2d of the internal revenue code irc. Examples of qualified medical expenses the following list includes. Access your account through the via benefits accounts website single signon to the site through mybenefits online. Any otherwise unreimbursed expenses as defined under 2d of the internal revenue code, except amounts distributed to pay health insurance premiums, are eligible. Medicare premiums and outofpocket expenses for part a, part b, part c and part d expenses that dont qualify if you pay for anything other than qualified expenses with your hsa, the amount will be taxable, and you will pay an additional 20 percent tax penalty. Jan 01, 2020 hsa you can use your hsa to pay for eligible health care, dental, and vision expenses for yourself, your spouse, or eligible dependents children, siblings, parents, and others who are considered an exemption under section 152 of the tax code. Your limited expense health care fsa pays for qualifying dental and vision services and certain products.
This means that you hav e to incur the expenses after you have the hsa. Eligible and ineligible expenses for hsa below is a partial list of permissible expenses reimbursable through a health savings account hsa that are incurred by you, your spouse, or. Health savings account hsa dependent care flexible spending account dc fsa there are several types of accounts that are not included in the list because the eligible expenses vary between employers. Health savings account hsa dependent care flexible spending account dc fsa there are several types of accounts that are not included in the list because the eligible expenses vary. This is not a complete list but rather represents commonly questioned eligible expenses. Qualified medical expenses funds you withdraw from your hsa are taxfree when used to pay for qualified medical expenses as described in section 2d of the internal revenue service tax. You can now use your hsa, fsa, or hra for overthecounter otc medications without a prescription. Health care flexible spending account fsa eligible. Publication 969 2019, health savings accounts and other. Publication 969 2019, health savings accounts and other tax.
If you pay for anything other than qualified expenses with your hsa, the amount will be taxable. The examples listed here are not allinclusive, consult your tax advisor or see irs publication 502 or irs publication 969 for more information. Datapath summit features allinone, cloudbased hsa administration, with management, investments, and flexible banking options. For full hsa eligible expenses and guidelines, refer to irs publication 502 or contact your hsa administrator. Items that can be used for a medical purpose or for general health and wellbeing are considered dual purpose and are eligible only with a prescription, doctors directive or letter of medical necessity. Review irs publication 502 for a full list of eligible health care expenses.
Eligible longterm care health care coverage while receiving federal or state. Qualified expenses for a health savings account hsa. Medical fsa and hsa expense eligibility list updated 07212015 skin drugs or medicines that must be prescribed in order to qualify. Below are some qualified medical expenses that may be paid from your hsa. You cant use the funds for medical care that you had before you open the hsa. From a to z, every item and service deemed eligible for taxfree spending will be.
When you, your spouse, and your dependents have qualified medical. Here it is the mostcomprehensive hsa eligibility list available on the web. If you are 64 or younger, you will also pay an additional 20 percent tax penalty. Funds you withdraw from your hsa are taxfree when used to pay for qualified medical expenses as described in section 2d of the internal revenue service tax code. For further information refer to irs publication 502 and irs publication 969 at. When you spend your hsa funds on qualified expenses, you are never taxed.
Datapath summit features allinone, cloudbased hsa administration, with. These accounts may only allow you to be reimbursed for dental expenses, only vision, both, premiums only, etc. Your guide to understanding a health savings account. You can use your limited expense health care fsa lex hcfsa funds to pay for a. To ensure compliance with requirements imposed by the irs, aetna informs you that any federal income tax information contained in this communication including any attachments is not intended to and cannot be used by anyone to avoid irs penalties. Hsa spending qualified medical expenses qmes fidelity. Future developments whats new internal revenue service. There are multiple ways you can spend from your hsa. The expenses associated with the adoption of a child are not eligible for reimbursement with a flexible spending account fsa, health savings account hsa, health reimbursement arrangement hra, limited care flexible spending account lcfsa or dependent care flexible spending account dcfsa. The irs outlines which medical, vision, dental and prescriptions qualify within an hsa. Proof of qualified expenses is the hsa account holders responsibility.
Qualified medical expenses qme are designated by the irs. You have plenty of options for using your hsa to pay for qualified medical expenses as they happen or in the future. Weve also put together summaries of dependent care assistance program dcap and commuter. Hsa eligible expensesqualified hsa expenses wageworks. Hsa funds may even be used for eligible expenses for your spouse or tax dependents. Health savings accounts hsas a health savings account hsa is a taxexempt trust or custodial account you set up with a qualified hsa trustee to pay or reimburse certain medical expenses you incur. Qualified medical expenses funds you withdraw from your hsa are taxfree when used to pay for qualified medical expenses as described in section 2d of the internal revenue service tax code. They include medical, dental, vision and prescription expenses. This list is meant to be used as general guidance for. To ensure compliance with requirements imposed by the irs, aetna informs you that any federal.
The expenses associated with the adoption of a child are not eligible for reimbursement with a flexible spending account fsa, health savings account hsa, health reimbursement. They can also include items that a person may purchase for routine care. Health savings accounts hsa are individual accounts offered by optum bank, member fdic, and are subject to eligibility and restrictions, including but not limited to restrictions on distributions for qualified medical expenses set forth in section 2d of the internal revenue code. People older than age 65 can use hsa funds to pay for nonqualified expenses, but they must report the disbursements as taxable income. You can deduct on schedule a form 1040 or 1040sr only the part of your medical and dental expenses that is more than 7. Medical dental vision pharmacy including but not limited to. The irs sets limits each year for maximum contributions to each type of accountbased benefit. Please refer to your employers summary plan description spd for your specific plan details. A health savings account hsa is a taxexempt trust or custodial account you set up with a qualified hsa trustee to pay or reimburse certain medical expenses you incur.
Generally, eligible expenses for health related flexible spending accounts are outofpocket medical, dental, and vision expenses. To help you keep track, we put together the hsa, fsa, and hra eligible expenses list below. These can include adult diapers, contact lens solutions, and contraceptives. You can pay for a wide range of irsqualified medical expenses with your hsa, including many that arent typically covered by health insurance plans. Qualified medical expenses hsaqualified medical expenses are defined by irs code, section 2d and include amounts paid for the diagnosis, cure, mitigation, treatment or prevention of disease for the purpose of affecting any structure or function of the body. Eligible expenses in an hra will vary depending on plan design. The funds provided in your reimbursement program can be. You must be an eligible individual to qualify for an hsa. These lists reference eligibility and supporting documentation for 2020 benefit period expenses.
Even though an item may be found in a list, it does not guarantee reimbursement. There is no time limit for when you actually reimburse yourself. Once youve contributed money to your health savings account hsa, you can use it to pay for qualified medical expenses for yourself, your spouse and your eligible dependents. The new cares act expands eligible expenses for hsas, fsas, and hras. Health savings accounts hsas a health savings account hsa is a taxexempt trust or custodial account you set up with a qualified hsa trustee to pay or reimburse certain medical. Employee education expenses that qualify for reimbursement from tasc hsa hs4248120115 medical expenses acupuncture artificial limbs. If you are currently participating in a highdeductible health plan hdhp and are contributing to a health savings account hsa, you may also participate in a limited purpose fsa. Eligible expenses myhsa abg retirement plan services.
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