If you use your HSA for an expense other than eligible medical expenses you can subject yourself to significant IRS penalties. Inappropriate use of your HSA funds may also leave you without money to pay for your eligible medical expenses in the future. We suggest saving your HSA money as much as possible the first year so that you can easily meet your deductible should you incur major medical expenses at a later time. Show
If you made an error and used money for an ineligible expense, you may attach that money to eligible expense receipts until the ineligible amount has been truly used by eligible expenses. At age 65, your HSA dollars may be spent on anything without penalty, but you will be required to pay income tax on ineligible purchases. Eligible purchases will continue to be tax-free. You can use the funds in your Health Savings Account (HSA) to pay for IRS-qualified medical expenses, such as doctors’ visits and medications. You can pay for your IRS-qualified medical expenses using your HSA Bank Health Benefits Debit Card or pay out-of-pocket and reimburse yourself later with HSA funds. To be eligible to open an HSA, you must have a special type of health insurance called a high-deductible plan (HDHP). These plans only start covering your health expenses once you have met your deductible, so many people choose to supplement HDHPs with a Mira membership. Mira can help you access affordable lab testing, urgent care visits, and virtual care visit without meeting a deductible. Health Savings Accounts (HSAs)HSA funds are a tax-free way of paying for IRS-qualified medical expenses. You own and control the money in your HSA. People will often use their HSA funds for dental or vision services if they do not have coverage. Using an HSA gives you the following tax benefits:
In 2022, the maximum contribution to an HSA is $3,650 for a single plan and $7,300 for a family plan. You can use HSA funds on various health care expenses for you, your spouse, and eligible dependents. The HSA bank publishes resources to help you understand the ins and outs of an HSA and what you can use the funds for, known as IRS-Qualified Medical Expenses. Common IRS-qualified Medical ExpensesThere are frequent updates to the regulations around HSA expenses, so be sure to check before making a purchase to ensure you will not be penalized. Additionally, some employer-provided plans only reimburse a subset of expenses, so you may need to check the specific plan details. The following list is not exhaustive but includes common IRS-qualified medical expenses that you can use your HSA funds to pay for:
There are two ways to access your HSA funds. The first is to use the Health Benefits Debit Card directly to pay for services and products. The second way to use HSA funds is to pay out-of-pocket for qualified health expenses and reimburse yourself with funds from your HSA. Health Benefits Debit CardWhen you set up an HSA, you can get a Health Benefits Debit Card. You can use the debit card to use money from your HSA to pay for eligible expenses directly; however, there are limits placed on the Health Benefits Debit Card. For healthcare merchants like a doctor’s office or hospital, the daily limit is $5,000. At other merchants that are not healthcare specific but offer eligible medical products and services, like a grocery store, the limit is $3,500. There is also a limit on the number of debit card transactions allowed per day to protect against fraud. For more information, you can call the number on the back of your Health Benefits Debit Card. To pay for an expense that exceeds the Health Benefits Debit Card daily limit of $5,000, HSA Bank provides you with multiple options, which include:
 Get Mira - Health Benefits You Can Afford.Get doctor visits, lab tests, prescription, and more. Affordable copays. Available in 45+ states. Only $45/month on average. HSA ReimbursementAn alternative to using the debit card is to pay yourself back by withdrawing money from your HSA at an ATM. You can use your HSA card at an ATM to reimburse yourself for eligible expenses paid out-of-pocket. Ensure that you keep receipts or documentation of the qualified expenses you will be reimbursed for, as you will be penalized for removing money from your health savings account for nonqualifying expenses. Health Savings Account Funds Frequently Asked Questions (FAQs)HSA regulations are complicated and tend to change frequently. The HSA bank has many resources to help you navigate setting up and using your HSA. A comprehensive list of common questions can be found on their website, but keep reading some key points and frequently asked questions. What happens if I use HSA funds for non-medical expenses?If you are under 65 years old and use HSA funds for non-medical expenses, you will need to pay income taxes on the money and a 20% penalty. After the age of 65, you can withdraw pre-tax money from your HSA for non-medical expenses and only pay income tax, not the 20% penalty. Does my HSA money roll over year to year?Any money left over in your HSA account at the end of the year will roll over to the following year. There is no time limit on using the funds, even if you no longer have HDHP coverage. If you have an HSA through your employer, you can withdraw the remaining balance when you leave your job. You can also use the money in your HSA to pay for your spouse’s and dependents’ medical expenses. Virtual care for only $25 per visitVirtual primary care, urgent care, and behavioral health visits are only $25 with a Mira membership. Do I need to submit receipts for my HSA expenses?You do not need to submit any receipts to get reimbursed for medical expenses; however, you should save the receipts for 7 years in case you ever get audited. You will need to prove the funds were used for qualified medical expenses. HSA Bank offers an online expense tracker to help you keep all of your medical expense documentation in one place. There is no deadline for when you can reimburse yourself for medical expenses. In fact, you can wait decades, then reimburse yourself for all of the medical expense receipts you’ve paid since you opened your HSA. Can I use my HSA for over-the-counter medicines?Yes, there are some over-the-counter medicines your HSA funds can reimburse you for. Some common ones include:
What services do HSA funds not cover?Some services and expenses that are not eligible for HSA reimbursement include:
Can I use HSA funds for child care?You can use your HSA funds for some child care expenses. Eligible dependent care expenses include:
Bottom LineDepositing money into an HSA can save you money on health care expenses, but there are limits to its use. HSA funds can only be used for qualified medical expenses. You can use your HSA funds by using the debit card provided or reimbursing yourself afterward. For additional health care cost savings, consider a membership with Mira. With plans as affordable as $25 per month, Mira provides access to $5 virtual care visits, discounted prescription medications, and affordable urgent care visits. Even without health insurance, you can find ways to access reasonably priced care with Mira. Can an HSA card be used for anything?HSA - You can use your HSA to pay for eligible health care, dental, and vision expenses for yourself, your spouse, or eligible dependents (children, siblings, parents, and others who are considered an exemption under Section 152 of the tax code).
Can I use my HSA card at Walmart?Walmart.com currently does not accept FSA/HSA cards as a payment method. You can use a credit, debit, or gift card to pay for your order with FSA/HSA eligible items. Only offers HSA- and FSA-eligible items that don't need prescriptions in its shop for “ease of purchase”
What can I buy at the store with my HSA card?What Can You Pay for With an HSA?. Sunscreen.. Over-the-counter pain relievers, cold medicines and stomach remedies.. Air purifiers and filters.. Feminine hygiene products.. Birth control.. First aid supplies, including bandages.. Orthotics, orthopedic braces and wraps.. Pregnancy and fertility tests.. Can I use my HSA debit card at an ATM?Health Benefits Debit Card – Your HSA Bank Health Benefits Debit Card provides access to your HSA funds at point-of-sale with signature or PIN and at ATMs for withdrawals.
|
Can i use my hsa card for groceries
Related Posts
Copyright © 2024 paraquee Inc.
