The IRS allows for withdrawal of funds from Health Savings Accounts (HSAs) on a tax-free basis, if those withdrawals are used to pay for qualified medical, dental and vision expenses defined under the IRS statute. The rules governing disbursements are remarkably broad and allow for expenses not traditionally permitted by medical insurance, such as Lasik surgery, long-term care insurance premiums and dental care. We are frequently asked if the HSA can be used to pay for medical insurance premiums. The answer is yes, but only during periods of unemployment. Also remember that most over-the-counter drugs (such as aspirin) don’t qualify as a tax-deductible expense unless you have a doctor’s prescription.
There is no statute of limitations affecting disbursements from your account. That means you can reimburse yourself for qualified expenses incurred at any time after your HSA is set-up and funded. In case the IRS audits you, be sure to save receipts to justify your withdrawals. Sterling scans all receipts sent to us to provide copies if you need them.
Sterling will issue a debit card for you and your dependents (if you choose) to easily access the money in your HSA. You can also pay for qualified expenses and be reimbursed out of your HSA or even set up direct payment to your healthcare providers.
But it’s very important that you use the HSA money only for qualified expenses. There are BIG penalties for using it in ways that the IRS doesn’t allow. The IRS imposes taxes and penalties (20%) on disbursements that are considered not qualified. As your administrator, Sterling is required to report to the IRS any unqualified disbursements, such as funds returned to you should you close your account.
Visit our website for more information or contact customer service at 800-617-4729 or firstname.lastname@example.org.
Cora M. Tellez
President & CEO
The IRS has released its Health Savings Account (HSA) contribution limits for 2015.
For individuals, the 2015 limit will be $3,350 (it’s $3,300 in 2014) and for families the 2015 limit will be $6,650 (it’s $6,550 in 2014). Individuals 55 and over may contribute $1,000 more as a “catch up” contribution.
Learn more about Health Savings Accounts.
Pumpkins are everywhere now, so it’s easy to make your own roasted puree for this soup. As a time-saver, use canned pumpkin instead.
3/4 cup water, divided
1 small onion, chopped
1 can (15 ounces) pumpkin puree
2 cups unsalted vegetable broth
1/2 teaspoon ground cinnamon
1/4 teaspoon ground nutmeg
1 cup fat-free milk
1/8 teaspoon black pepper
1 green onion top, chopped
In a large saucepan, heat 1/4 cup water over medium heat. Add onion and cook until tender, about 3 minutes. Don’t let onion dry out.
Add remaining water, pumpkin, broth, cinnamon and nutmeg. Bring to a boil, reduce heat and simmer for 5 minutes. Stir in the milk and cook until hot. Don’t boil.
Ladle soup into warmed bowls and garnish with black pepper and green onion tops. Serve immediately.
Mayo Clinic Dietitian’s tip:
Canned pumpkin puree is available all year. When pumpkins are in season, however, you can make your own puree by roasting a small pie pumpkin and processing the flesh in a blender or food processor.
ERISA (Employee Retirement Income Security Act) is a federal law that regulates group-sponsored benefits, often called welfare benefit plans. Failure to comply with all of the requirements under ERISA often subjects employers to severe penalties including court cases, awards and Department of Labor (DOL) fines.
Our compliance experts can help you prepare ERISA Wrap plan documents to avoid these problems.
We know this time of the year can be hectic. To give you one less thing to worry about, we’ve extended the special offer on our Evergreen ERISA Wrap Document service.
Limited Time Special Offer:
- For ERISA Wrap effective dates June 1 –
December 31, 2014
- 5 year Evergreen ERISA Wrap Document
- Must have less than 100 employees
- Form 5500 not included, all other services and changes additional
Special offer ends December 31, 2014. Learn more about our ERISA Wrap Services.
Let us make the complex simple. Don’t miss this opportunity. Contact your Sterling Sales Representative today.