If you are currently participating in a highdeductible health plan hdhp and are contributing to an hsa, you may also participate in a limited purpose health fsa. 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. Future developments whats new internal revenue service. Some pharmacies can even tell you what purchases are or.
There are thousands of eligible expenses for taxfree purchase with a health savings account hsa, flexible spending account fsa, and health reimbursement arrangement hraincluding prescriptions, doctors office copays, health insurance deductibles, and coinsurance. The internal revenue service irs publishes information on fsas, hsas, and eligible expenses at irs. Any expenses that are listed as potentially eligible may require additional documentation such as a letter of medical necessity pdf. Any hsa funds used for nonqualified expenses will be taxable. Cobra health insurance, insurance premiums after you reach age 65 including medicare parts a, b, c and d but not medicare supplement plans, qualified longterm care insurance, health insurance premiums while receiving unemployment compensation under state or federal law and premiums for.
Snoring cessation aids vitamins and herbal supplements. Qualified expenses for a health savings account hsa. The hsa can only be used to pay for eligible medical expenses incurred after your hsa was established. Publication 969 2019, health savings accounts and other. These lists are not allinclusive, and are subject to change by the irs. 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. There are thousands of eligible expenses for taxfree purchase with a health savings. Distributions from your hsa can be made by check, debit card, atm, online bill payment or by inperson request. Your handy list of fsa eligible expenses pdf employers. You have plenty of options for using your hsa to pay for qualified medical expenses as they happen or in the future.
Below is a partial list of eligible expenses that are reimbursable through an hsa. Expenses are limited to dental and vision expenses. You can deduct on schedule a form 1040 or 1040sr only the part of your medical and dental expenses that is. It can be tempting to withdraw funds from your hsa for purposes other than qualified expenses. Distributions made for anything other than qualified medical expenses are subject to irs tax plus a 20% penalty. It is a taxexempt savings account that can be used to pay for certain medical expenses when paired with a qualified highdeductible health plan.
For full hsa eligible expenses and guidelines, refer to irs publication 502 or contact your hsa administrator. It is important to note that the irs decides which expenses are. Hsa eligible medical expenses below is a quick reference list of eligible medical expenses that can be reimbursed from your health savings account hsa. Eligible medical expenses are described in section 2d of the internal revenue code. 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. Examples of qualified medical expenses the following list includes common examples of hsa qualified medical expenses. Hsaeligible insurance premium expenses see note below. Health savings account hsa eligible expense guide wageworks. Hsa funds may even be used for eligible expenses for your spouse or tax dependents. Medical fsa and hsa expense eligibility list irs code section 2 d eligible expenses the following is a summary of common expenses claimed against medical flexible spending accounts fsas and health savings accounts hsas. Section 2d eligible expenses if you have any questions on what constitutes a section 2d eligible expense, please contact our customer relations team.
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. If you have questions about an expense please contact us at 2106598100. See the last page for rules regarding documentation. If you are age 65 or older, the tax penalty does not apply, but the amount.
The internal revenue service irs publishes information on hsas and qualified medical expenses. If you pay for anything other than qualified expenses with your hsa, the amount will be taxable. In addition, if you use an hsa to pay for items or services that are not qualified medical expenses and you are under age 65, the tax penalty will increase from 10 percent to 20 percent of the hsa distribution. This list applies to reimbursement under an hsa as well.
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. Must be currently enrolled in an hsaqualified health plan. To be a qualified expense, the expense has to be primarily for the prevention or alleviation of a physical or mental defect or illness. These lists reference eligibility and supporting documentation for 2020 benefit period expenses. View a list of all the health savings account hsa qualified expenses for 2020. Hsa spending qualified medical expenses qmes fidelity. If you take this route, be prepared for a large tax bill.
Hsa eligibility to be eligible to make deposits to an hsa, the account holder. Nonqualified distributions could also be subject to a 20% irs penalty. Even though an item may be found in a list, it does not guarantee reimbursement. For additional information on hsa eligible expenses, consult. The expense is not eligible for reimbursement under any circumstance. No permission or authorization from the irs is necessary to establish an hsa.
For additional information on hsa eligible expenses, consult irs publication 502 medical and dental expenses. Health savings account hsa eligibleineligible expenses funds you withdraw from your hsa or fsa are taxfree when used to pay for qualified medical expenses as described in section 2d of the internal revenue service tax code. Expenses are limited to dental and vision expenses identified with an in the list below. Use these tables to determine which products and services are considered qualified medical expenses under irs rule and what supplementary documentation you may need to provide for your expenses or retain in case of an audit. 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. Eligible expenses in an hra will vary depending on plan design. You can deduct on schedule a form 1040 or 1040sr only the part of your medical and dental expenses that is more than 7. 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. Our pdf download is an extensive list of common eligible items including items that will require a doctors prescription. Hsa eligible expense list hsaeligible insurance premium expenses see note below ace bandages acne treatments acupuncture allergy and sinus medicine antacids and digestive aids antibiotic ointments antifungal and antiitch aspirin and other pain relievers asthma medicine athletic treatments bandaids blood pressure monitors canker and cold. Eligible expenses can also include expenses incurred outside your province of residence, deductibles, copayments, and amounts above plan maximums. What happens if i use my hsa for a non qualified expense.
An eligible expense is a health care service, treatment or item the irs states can be paid for without taxes. 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. You must be an eligible individual to qualify for an hsa. Health savings account hsa eligibleineligible 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. Benefits eligible hsa and fsa expenses eligible expenses guide.
Hsa eligible expense list hsa eligible insurance premium expenses see note below ace bandages acne treatments acupuncture allergy and sinus medicine antacids and digestive aids antibiotic ointments antifungal and antiitch aspirin and other pain relievers asthma medicine athletic treatments bandaids blood pressure monitors canker and cold. Search under internal revenue service irs publication 502, medical and dental expenses. If the improvement is permanent and increases the value of the property, the expense will qualify only to the extent that the improvement cost exceeds the increase in property value. 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. Proof of qualified expenses is the hsa account holders responsibility. If you pay medical expenses by check, the day you mail or deliver the check generally is the date of payment. Medical expenses include dental expenses, and in this publication the term medical expenses is often used to refer to medical and dental 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. The irs outlines which medical, vision, dental and prescriptions qualify within an hsa. Medical fsa, hsa and hra expense eligibility list the following is a summary of common eligible expenses for the medical flexible spending account fsas, health savings accounts hsas and health reimbursement account hra. Medical expenses allowed as deductions are determined by section 2 d of the internal revenue code. Once you turn 65, you may withdraw funds for any reason. Eligible expenses can be incurred by you, your spouse or qualified dependents. 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.
The expenses must be primarily to alleviate or prevent a physical or. Eligible expenses below are some qualified medical expenses that may be paid from your hsa. The expenses must be primarily to alleviate or prevent a physical or mental defect or illness, including dental and vision. Eligible expenses include health plan copayments, dental work and orthodontia, eyeglasses and contact lenses, and prescriptions. For further information refer to irs publication 502 and irs publication 969 at. You can also see a list of all nonhsa qualified expenses. 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. Insurance premiums are eligible medical expenses for an hsa in only the following situations. For more information, see your hsa participant guide. 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. The amount you spend will be federal income taxfree. 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. Rxmn eligible for reimbursement with a doctors noteprescription for products or a medical necessity form for services. Hsa eligible expensesqualified hsa expenses wageworks.
Expenses marked with an asterisk are potentially eligible expenses that require a note of medical necessity from your health care provider, which should be kept with your receipt for the expense. If you are 64 or younger, you will also pay an additional 20 percent tax penalty. Datapath summit features allinone, cloudbased hsa administration, with management, investments, and flexible banking options. 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. The expenses must be primarily to alleviate or prevent a physical or mental defect or illness, including. Distributions for qualified medical expenses are tax free. When you spend your hsa funds on qualified expenses, you are never taxed. Savings accounts and other taxfavored health plans, which you can download.
Certain health insurance premiums are eligible to be paid out of an hsa. For the complete list of eligible and ineligible expenses, visit. There are multiple ways you can spend from your hsa. 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 can be incurred by you, your spouse, or qualified dependents. Not all highdeductible health plans are qualified, so its important to consult with your health care provider to. If you use a paybyphone or online account to pay your medical expenses, the date reported on the statement of the finan. Your benefitwallet health savings account hsa is one of the most powerful savings accounts in america allowing you to save up to 35% in taxes on every dollar you contribute. 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. Eligible expenses myhsa epic retirement plan services. Generally, eligible expenses for health related flexible spending accounts are outofpocket medical, dental, and vision expenses. Eligible expenses may be paid from your hsa for yourself, your spouse, and other qualified tax. Once you have contributed money into your health savings account hsa, you can use it to pay for eligible medical expenses tax free.