Page 16 - Busey 2020 Benefits Guide
P. 16
What Expenses are Eligible for Reimbursement From an
Always remember to HSA?
keep your receipts! If
the IRS audits you to An HSA may reimburse IRS qualiied medical expenses incurred by you,
make sure you used the account holder, your spouse and your dependents (even if the spouse
your HSA for eligible and dependent children are not enrolled in a CDHP). Qualiied health
expenses, you will need
to provide receipts in expenses are deined by the IRS in IRC Sec. 213(d).
order to avoid paying
the penalty. 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If you are audited and are found to have withdrawn funds from your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.
16 2020 Benefits Guide
Always remember to HSA?
keep your receipts! If
the IRS audits you to An HSA may reimburse IRS qualiied medical expenses incurred by you,
make sure you used the account holder, your spouse and your dependents (even if the spouse
your HSA for eligible and dependent children are not enrolled in a CDHP). Qualiied health
expenses, you will need
to provide receipts in expenses are deined by the IRS in IRC Sec. 213(d).
order to avoid paying
the penalty. 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.
16 2020 Benefits Guide
