![]() ![]() “When reimbursing himself from the HSA, it’s important that he maintains proof of payment and documentation that the expenses were eligible, in the event of an audit (although he does not need to submit any receipts to be reimbursed),” says Begonya Klumb, head of HSAs for Fidelity Health Care Group. As part of the CARES ( Coronavirus Aid, Relief, and Economic Security) Act, effective January 1, 2020, eligible medical expenses were expanded to include over-the-counter medicines without requiring a prescription as well as menstrual care items. And you can’t withdraw money for expenses you incurred before you opened up the HSA. HSA money used for non-qualified expenses will be subject to taxes. You just need to keep receipts showing that you paid for eligible expenses. Fertility Enhancement and Treatments (ovulation kit) Fever. So if you’ve had an HSA for several years and didn’t realize you could withdraw money tax-free for Medicare premiums, you could reimburse yourself for all of those premiums at any time. The cost of feminine hygiene products are eligible medical expenses. What expenses are HSA eligible There are hundreds of expenses that are eligible for funds, including: Copayments Sunscreen Contact lenses Dental services Ambulance Shop the HSA Store to find hundreds of eligible expenses. You can keep the money growing tax-deferred in the account, then withdraw it tax-free at any time in the future to reimburse yourself for any eligible expenses you have incurred since you opened the HSA. For 2022, if you have an HDHP, you can contribute up to 3,650 for self-only coverage and up to 7,300 for family coverage into an HSA. After you turn 65, you can use HSA money tax-free to pay premiums for Medicare parts B and D and Medicare Advantage plans (but not premiums for Medicare supplement policies), in addition to paying for other out-of-pocket medical expenses.Īnd there’s no time limit for withdrawing money from an HSA to pay for those expenses. In addition to being able to withdraw your money tax free to cover these types of expenses (which might otherwise be covered by a traditional low-deductible high-premium policy), you can use your HSA account to cover other costs that would not normally be covered by a health insurance policy.Answer: Even though you have your Medicare premiums paid directly out of your Social Security benefits, you can withdraw money tax-free from your HSA to reimburse yourself for those expenses. A Health Savings Account (HSA) is a tax-advantaged account to help people save for medical expenses that are not reimbursed by high-deductible health plans (HDHPs). Expenses compensated or reimbursed by insurance are not eligible HSA expenses. But you can use the money in your HSA to pay for qualifying medical expenses for yourself, your wife, and your son. Note: The IRS defines which medical expenses are eligible under a tax-deferred. These expenses will not qualify without a letter of medical necessity. Eligible Medical Expenses Baby/Child to Age 13 Dental Services Hearing Lab Exams/Tests Vision Services Medical Procedures/Services Medical Equipment/. Also see 10 Myths About Health Savings Accounts for more information about. Once your deductible is met, the health insurance covers your medical expenses as defined in the policy. You can contribute 3,850 to your HSA in 2023, since you have self-only HDHP coverage. For more information about HSA-eligible expenses, see IRS Publication 969, Health Savings Accounts (opens in new tab). With an HSA-compatible plan, this includes any expenses you incur from going to the doctor, purchasing prescription drugs, or paying other expenses toward your deductible. Qualified Medical expenses include: Medicare Part B premiums Medicare Part C premiums Medicare. Even though you receive a tax deduction by putting your money into a health savings account, the money is still yours to spend tax free, as long as you spend it on qualified medical expenses. You can use the funds from your HSA to pay healthcare costs, including your Medicare premiums.
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