Page 18 - Busey Corporation 2022 Benefits Guide
P. 18
What Expenses are Eligible for
Always remember to keep your Reimbursement From an HSA?
receipts! If the IRS audits you to make An HSA may reimburse IRS qualiied medical
sure you used your HSA for eligible expenses incurred by you, the account holder, your
expenses, you will need to provide spouse and your dependents (even if the spouse
receipts in order to avoid paying and dependent children are not enrolled in a CDHP).
the penalty.
Qualiied health expenses are deined by the IRS in
IRC Sec. 213(d).
In addition to qualiied health expenses, the
following insurance premiums may be reimbursed
from an HSA:
■ COBRA premiums
■ Health insurance premiums while receiving
unemployment beneits
■ Qualiied long-term care premiums (the
reimbursable amount depends on one’s age)
■ Any health insurance premiums paid, other than
for a Medicare supplemental “Medigap” policy,
by individuals age 65 and over
Can Ineligible Expenses be Reimbursed
From an HSA?
Yes. Neither the trustee, bank, insurance company
nor the employer are required to determine if a
claim submitted for reimbursement is a qualifying
expense.
If you are audited and are found to have withdrawn
funds from your HSA for non-qualifying health
expenses, this amount will be subject to a 20%
penalty as well as taxes. Where funds are distributed
as a result of the account beneiciary’s death,
disability, or after he or she is eligible for Medicare,
the 20% penalty does not apply.
Distributions made from an HSA to reimburse the
account beneiciary for qualiied health expenses are
excluded from gross income.
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Always remember to keep your Reimbursement From an HSA?
receipts! If the IRS audits you to make An HSA may reimburse IRS qualiied medical
sure you used your HSA for eligible expenses incurred by you, the account holder, your
expenses, you will need to provide spouse and your dependents (even if the spouse
receipts in order to avoid paying and dependent children are not enrolled in a CDHP).
the penalty.
Qualiied health expenses are deined by the IRS in
IRC Sec. 213(d).
In addition to qualiied health expenses, the
following insurance premiums may be reimbursed
from an HSA:
■ COBRA premiums
■ Health insurance premiums while receiving
unemployment beneits
■ Qualiied long-term care premiums (the
reimbursable amount depends on one’s age)
■ Any health insurance premiums paid, other than
for a Medicare supplemental “Medigap” policy,
by individuals age 65 and over
Can Ineligible Expenses be Reimbursed
From an HSA?
Yes. Neither the trustee, bank, insurance company
nor the employer are required to determine if a
claim submitted for reimbursement is a qualifying
expense.
If you are audited and are found to have withdrawn
funds from your HSA for non-qualifying health
expenses, this amount will be subject to a 20%
penalty as well as taxes. Where funds are distributed
as a result of the account beneiciary’s death,
disability, or after he or she is eligible for Medicare,
the 20% penalty does not apply.
Distributions made from an HSA to reimburse the
account beneiciary for qualiied health expenses are
excluded from gross income.
18
