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Planning for the Future What Expenses are Eligible for Reimbursement From an
You can continue to use your HSA?
account tax-free for out-of-pocket An HSA may reimburse IRS qualiied healthcare expenses incurred by
health expenses when you turn 65. you, the account holder, your spouse and your dependents (even if the
When you enroll in any portion spouse and dependent children are not enrolled in a CDHP). Qualiied
of Medicare, you can no longer healthcare expenses are deined by the IRS in IRC Sec. 213(d).
contribute to an HSA, but you
can still use your account to pay In addition to qualiied healthcare expenses, the following insurance
Medicare premiums, deductibles, premiums may be reimbursed from an HSA:
copays, and coinsurance under COBRA premiums
any part of Medicare. The one
expense you cannot use your Health insurance premiums while receiving unemployment beneits
account for is to purchase a Qualiied long term care premiums (the reimbursable amount
Medicare supplemental insurance depends on one’s age)
or “Medigap” policy. Once you Any health insurance premiums paid, other than for a Medicare
turn age 65, you can also use your supplemental “Medigap” policy, by individuals age 65 and over
account to pay for things other
than medical expenses. If used Can Ineligible Expenses be Reimbursed From an HSA?
for other expenses, the amount Yes. Neither the trustee, bank, insurance company nor the employer
withdrawn will be taxable as are required to determine if a claim submitted for reimbursement is a
income but will not be subject to qualifying healthcare expense.
any other penalties.
If you are audited and are found to have withdrawn funds from your
HSA for non-qualifying healthcare expenses, this amount will be subject
Always remember to to a 20% penalty. Where funds are distributed as a result of the account
keep your receipts! If beneiciary’s death, disability, or after he or she is eligible for Medicare, the
the IRS audits you to 20% penalty does not apply.
make sure you used
your HSA for eligible Distributions made from an HSA to reimburse the account beneiciary
expenses, you will need for qualiied healthcare expenses are excluded from gross income.
to provide receipts in
order to avoid paying What are Examples of Ineligible HSA Expenses?
the penalty .
The following expenses may not be reimbursed from an HSA.
Premiums for Medicare supplemental policies
Expenses covered by another health plan
Expenses incurred prior to the date the HSA was established
10 2019 Benefits Enrollment
You can continue to use your HSA?
account tax-free for out-of-pocket An HSA may reimburse IRS qualiied healthcare expenses incurred by
health expenses when you turn 65. you, the account holder, your spouse and your dependents (even if the
When you enroll in any portion spouse and dependent children are not enrolled in a CDHP). Qualiied
of Medicare, you can no longer healthcare expenses are deined by the IRS in IRC Sec. 213(d).
contribute to an HSA, but you
can still use your account to pay In addition to qualiied healthcare expenses, the following insurance
Medicare premiums, deductibles, premiums may be reimbursed from an HSA:
copays, and coinsurance under COBRA premiums
any part of Medicare. The one
expense you cannot use your Health insurance premiums while receiving unemployment beneits
account for is to purchase a Qualiied long term care premiums (the reimbursable amount
Medicare supplemental insurance depends on one’s age)
or “Medigap” policy. Once you Any health insurance premiums paid, other than for a Medicare
turn age 65, you can also use your supplemental “Medigap” policy, by individuals age 65 and over
account to pay for things other
than medical expenses. If used Can Ineligible Expenses be Reimbursed From an HSA?
for other expenses, the amount Yes. Neither the trustee, bank, insurance company nor the employer
withdrawn will be taxable as are required to determine if a claim submitted for reimbursement is a
income but will not be subject to qualifying healthcare expense.
any other penalties.
If you are audited and are found to have withdrawn funds from your
HSA for non-qualifying healthcare expenses, this amount will be subject
Always remember to to a 20% penalty. Where funds are distributed as a result of the account
keep your receipts! If beneiciary’s death, disability, or after he or she is eligible for Medicare, the
the IRS audits you to 20% penalty does not apply.
make sure you used
your HSA for eligible Distributions made from an HSA to reimburse the account beneiciary
expenses, you will need for qualiied healthcare expenses are excluded from gross income.
to provide receipts in
order to avoid paying What are Examples of Ineligible HSA Expenses?
the penalty .
The following expenses may not be reimbursed from an HSA.
Premiums for Medicare supplemental policies
Expenses covered by another health plan
Expenses incurred prior to the date the HSA was established
10 2019 Benefits Enrollment
