Page 13 - 2017 Benefits Enrollment Busey Pulaski
P. 13
2017 BENEFITS ENROLLMENT
Always remember to
keep your receipts!
What Expenses are Eligible for Reimbursement From If the IRS audits you
to make sure you
an HSA? used your HSA for
An HSA may reimburse IRS qualiied medical expenses incurred by you, eligible expenses, you
the account holder, your spouse and your dependents (even if the spouse will need to provide
receipts in order to
and dependent children are not enrolled in a CDHP). Qualiied medical avoid paying the
expenses are deined by the IRS in IRC Sec. 213(d). penalty.
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
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If you are audited and are found to have withdrawn funds from your HSA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
percent 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.
FIRST BUSEY CORPORATION 13
Always remember to
keep your receipts!
What Expenses are Eligible for Reimbursement From If the IRS audits you
to make sure you
an HSA? used your HSA for
An HSA may reimburse IRS qualiied medical expenses incurred by you, eligible expenses, you
the account holder, your spouse and your dependents (even if the spouse will need to provide
receipts in order to
and dependent children are not enrolled in a CDHP). Qualiied medical avoid paying the
expenses are deined by the IRS in IRC Sec. 213(d). penalty.
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
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
percent 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.
FIRST BUSEY CORPORATION 13
