IRS Publication 969
IRS Publication 969 provides guidelines on filing your taxes for a Health Savings Account.
How the Health Reform changes will affect your HSA:
The Patient Protection and Affordable Care Act (PPACA) was signed into law by President Obama in March 2010, and components of the Act will go into effect over the next few years.
The following is a brief overview of changes that are going into effect in the near term or have already gone into effect.
Effective January 1, 2011, over-the-counter (OTC) medications will require a prescription from your doctor in order to be considered an eligible HSA or FSA expense. (This does not affect medications that already require a prescription.) Read More
Non-qualified medical expense withdrawal penalty
Effective January 1, 2011, the penalty for using your HSA funds for non-eligible medical expenses will increase from 10 percent to 20 percent. Be sure to keep receipts and records of your withdrawals/distributions for tax purposes.
Dependent coverage through age 26
Effective September 23, 2010, parents who have healthcare under a HDHP that is coupled with an HSA can include under their plan adult children up to the age of 26 (please note that that coverage after that time is governed by either your healthcare plan or state law.) The IRS did not change the age requirement, however, so please keep in mind that your adult child must still be considered a tax dependent in order for you to use your HSA funds to pay for his/her medical expenses.
For additional information on these healthcare changes, please visit us online at www.thebancorphsa-eb.com, or contact one of our HSA specialists, 24 hours a day, seven days a week, at 866.902.0356.