Page 13 - 2016 Open Enrollment

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Always remember to keep your
receipts! If the IRS audits you to make
sure you used your HSA for eligible
What expenses are eligible for reimbursement from an expenses, you will need to provide
HSA? receipts in order to avoid paying the

An HSA may reimburse IRS qualiied medical expenses incurred by you, penalty.
the account holder, your spouse and your dependents (even if the spouse
and dependent children are not enrolled in a CDHP). Qualiied medical
expenses are deined by the IRS in IRC Sec. 213(d).

In addition to qualiied medical 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

HSA eligible medical expenses are deined by the IRS. IRS Publication
502 provides a complete list of eligible expenses. Visit www.IRS.gov for
more information.

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 medical expense.

If you are audited and are found to have withdrawn funds from your
HSA for non-qualifying medical expenses, this amount will be subject
to a 20% penalty. 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 medical expenses are excluded from gross income.

Benefits Enrollment