Health savings account eligible expenses use your health savings account hsa funds to pay for hundreds of irsapproved health expenses and some health insurance deductibles and coinsurance. Hsa account funds can pay for qualified medical expenses for you, your spouse, and qualified dependents. 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. Use your hsa funds to pay for qualified medical expenses, taxfree. Prescriptions and medical devices were here to help for more information visit our website at or call us at 877. 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. In addition, each account is subject to additional rules that may prohibit reimbursement of an otherwise qualifying medical expense.
Eligible expenses include health plan copayments, dental work and orthodontia, eyeglasses and contact lenses, and prescriptions. To be a qualified expense, the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness. How win with an hsa learn more about how hsas are a sure win with healthcare reform. Publication 969 2019, health savings accounts and other. You must be an eligible individual to qualify for an hsa. Hsa eligible expensesqualified hsa expenses wageworks. This list applies to reimbursement under an hsa as well. Publication 969 2019, health savings accounts and other tax. Hsa funds may even be used for eligible expenses for your spouse or tax. A health savings account hsa is a federal taxexempt trust or custodial account that you set up with a bank of your choice to pay or reimburse certain medical expenses you. Use your hsa for qualified medical expenses hsa funds can be used for a variety of qualified medical, dental and vision expenses.
A health savings account hsa is a taxexempt trust or. Eligible expenses may be paid from your hsa for yourself, your spouse, and other qualified tax. Below is a reference list that may help you determine whether a medical expense is eligible for hsa reimbursement. Generally, health insurance premiums are not qualified medical expenses. Future developments whats new internal revenue service. Resultsmay vary depending on your individual income tax rate 2 see irs publication 969 for additional details. Full medical fsa accounts conflict with hsa accounts and are not allowed to mingle 2. If you are on medicare or go to another employer that does not have a qualified hdhp, you can still use your hsa money to pay for copays and qualified medical expenses, but will not be able to continue to make contributions to your hsa. Medical expenses include the premiums you pay for insurance that covers the expenses of medical care, and.
Examples of qualified medical expenses the following list includes common examples of hsa qualified medical expenses. The expenses must be primarily to alleviate or prevent a physical or. The following is a brief comparison of the similarities and differences between a health savings account hsa and a health care flexible spending account hcfsa. Also, nonprescription medicines other than insulin arent considered qualified medical expenses for hsa purposes. Your card can be used everywhere visa debit cards are accepted for qualified expenses. This communication is not intended as legal or tax advice.
The amount you spend will be federal income taxfree. Types of qualified medical expenses that health savings. Qualified and n onqualified medical expenses use your health care spending account to pay for or get reimbursed for a variety of medical goods and services and some health insurance premiums for select accounts. An irs qualified medical expense is defined as an expense that pays for healthcare services, equipment, or medications. An irsqualified medical expense is defined as an expense that pays for healthcare services, equipment, or medications.
The plan highlights on page 3 identifies the eligible hsa qualified plans. The irs definition of qualified dependent includes a child, relative, or decedent. Hsa funds can be used postretirement after age 65 for medical and non medical expenses without penalty, much like an ira. The expenses must be primarily to alleviate or prevent a physical or mental defect or illness, including dental and vision. 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. Please note that the following is not meant to be an allinclusive listing and may contain items which require specific criteria be met before the expense can be considered qualified.
Medical fsa and hsa expense eligibility list updated 07212015 skin drugs or medicines that must be prescribed in order to qualify. In revenue procedure 201226, issued on april 27, 2012, the irs provided the inflationadjusted hsa contribution and hdhp minimum deductible and outofpocket limits for 20. Eligible expenses can also include expenses incurred outside your province of residence, deductibles, copayments, and amounts above plan maximums. Eligible expenses can be incurred by you, your spouse, or qualified dependents. If you are 64 or younger, you will also pay an additional 20 percent tax penalty. If you pay for anything other than qualified expenses with your hsa, the amount will be taxable. Hsa fact sheet for administrators 2012 20 as the administrator for a group. Your hsa belongs to you, even if you change jobs or retire. You can use the hsa to pay for qualified medical expenses for yourself, your spouse and. From a to z, every item and service deemed eligible for taxfree spending will be here, complete with details and requirements. Fsa that are used to pay qualified medical expenses are not taxed. Medical care expenses must be primarily to alleviate or prevent a physical or mental disability or illness.
Hsa qualified medical expenses examples of qualified medical expenses listed below are the most common examples of qualified medical expenses. Additionally, the irs has allowed some overthecounter drugs to qualify as eligible medical expenses. To pay for qualified medical expenses, choose the option thats most convenient for you. Bandaid, curad batteries potentially will only qualify if used to operate a device that is itself a qualified expense e. Hsa eligible medical expenses blue cross blue shield.
You can always spend from your hsa for qualified medical expenses and, at age 65, you can also take penaltyfree1 distributions from your hsa for reasons other than medical expenses. Medical expenses include the premiums you pay for insurance that covers the expenses of. Hsa withdrawals used for qualified healthcare expenses are not taxed. You can reimburse yourself at any time for qualified expenses. Hsa funds can be used postretirement after age 65 for medical and nonmedical expenses without penalty, much like an ira.
You may also use your hsa funds to pay for eligible expenses from your spouse or tax dependents. Youll just need to pay income taxes, much like a 401k. You must certify the following in order to open an hsa with healthequity. Hsa deposits, withdrawals, and gains are all tax free at the federal level. Are health insurance premiums qualified medical expenses.
Qualified medical expenses hsa qualified 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. Using your hsa plan with your kaiser permanente hsaqualified deductible hmo plan, your. Medical expenses also include amounts paid for qualified longterm care services and limited amounts paid for any qualified longterm care insurance contract. Hsa funds when you withdraw them to pay for qualified medical expenses. Any earnings will be taxfree as long as you use the money for qualified medical expenses. The information provided herein is general in nature and provides examples of eligible qualified medical expenses based on irs publications 502 and 969 and other irs guidance. Learning center irs qualified medical expenses hsa, hra, healthcare fsa and dependent care eligibility list the following is a summary of common expenses claimed against health savings accounts hsas, health reimbursement arrangements hras, healthcare flexible spending accounts hcfsas, and dependent care fsas dcfsas. You may have investment opportunities with your hsa. Qualified medical expenses are those expenses that generally would qualify for the medical and dental expenses deduction. Contributing to an hsa past age 65 if you want to continue to contribute to your hsa, you must not. Health savings account hsa qualifiednonqualified expenses funds you withdraw from your hsa are income taxfree when used to pay for qualified medical expenses as described in section 2d of the internal revenue service tax code.
These expenses must not have been reimbursed previously by any other coverage, such as your flexible spending. Saver minimalist % 53% savings savings but wait, theres more. No permission or authorization from the irs is neces sary to establish an hsa. If you choose to pay out of pocket for medical expenses without making a withdrawal from your hsa, that is perfectly fine. Irsqualified medical expenses you can use your health savings account hsa to pay for a wide range of irsqualified medical expenses for yourself, your spouse or tax dependents. Search under internal revenue service irs publication 502, medical and dental expenses. See the complete list of qualiied and unqualiied medical expenses in irs publicaion 502medical and dental expenses. Your hsa funds can then be used taxfree to pay for qualified medical expenses. 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 expenses include the premiums you pay for insurance that covers the expenses of medical care, and the amounts you pay for transportation to get medical care. They dont include expenses that are merely beneficial to general health, such as vitamins or a vacation. Qualified medical expenses qme are designated by the irs. Feb 24, 2017 you can always spend from your hsa for qualified medical expenses and, at age 65, you can also take penaltyfree1 distributions from your hsa for reasons other than medical expenses.
The examples listed here are not allinclusive, consult your tax advisor or see irs publication 502 or irs publication 969 for more information. Irs qualified medical expenses you can use your health savings account hsa to pay for a wide range of irs qualified medical expenses for yourself, your spouse or tax dependents. 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. What happens if i use my hsa for a nonqualified expense. 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. Medical expenses allowed as deductions are determined by section 2 d of the internal revenue code. If you are 65 or older, the tax penalty does not apply, but the amount must be reported as taxable income. For 20, higher limits for hsa contributions and outof. Qualified medical expenses at a glance to maximize the value of your hsa, you must use your account funds for expenses the irs deems acceptable. Use your health savings account hsa funds to pay for hundreds of irsapproved health expenses and some. Any money left in your hsa at the end of the year continues to roll over and continue earning interest. Covered by a qualified highdeductible health plan pwcs middle and. Eligible expenses are reasonable medical expenses not reimbursed by any government sponsored or private health care plan. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment, and restrictions.
Overthecounter otc medicines or drugs can be reimbursed only if prescribed by a doctor. The more you contribute to your hsa the more you save on taxes. Use your optum bank health savings account debit mastercard. In addition, your hsa deposits earn taxfree interest and carry over from year to year, even if you change jobs or retire. Medical expenses include dental expenses, and in this publication the term medical expenses is often used to refer to medical and dental expenses. The deadline for making hsa contributions is the filing deadline.
Fsa funds can pay dental and vision along side an hsa 3. Hsa fact sheet for administrators episcopal diocese of. The irs determines which expenses are eligible for reimbursement. Eligible medical expenses are described in section 2d of the internal revenue code. Qualified medical expenses funds in your hsa can be. Hsa eligible medical expenses below is a quick reference list of eligible medical expenses that can be reimbursed from your health savings account hsa. Healthy blue hsa qualified medical expenses flier cf 11435. They include medical, dental, vision and prescription expenses. If hsa funds are used for other than qualified medical expenses, the expenditures are subject to applicable income tax and, for individuals who are not disabled or over age 65, subject to a 20% tax penalty. Hsa basics a health savings account hsa is a taxadvantaged checking account that gives you the ability to save for future medical expenses or pay current ones.
An hsa can be established any time after enrolling in a qualified high deductible health plan. Frequently asked your humana questions about hdhp and hsa. It is the hsa account holders responsibility to determine whether a particular expense is a qualified medical expense. By selecting an hsapowered plan with a higher deductible, you are qualified to contribute taxfree money into a health savings account hsa. Find out what you can buy with your health account. Expenses for items that are merely beneficial to the general health are not expenses for medical care.
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