Health Savings Accounts
If you or your employer are tired
of sending hundreds and hundreds
of dollars each month to your
health insurance company, and
would prefer to keep a big chunk
of that money for yourself to
spend on health expenses or save
it for the future, then you need
to look into a Health Savings
Account.
Is there an IRS approved list of
medical expenses that I can spend
my tax free Health Savings
Accounts funds on?
Yes, there is list of allowable
expenses published by the U.S.
Treasury Department, actually the
Internal Revenue Service, referred
generally as the ‘213 (d)’ list,
since it appears in IRS regulation
213 (d). Here is a link to the
list of allowable/not allowable
expenditures:
http://www.irs.gov/pub/irs-pdf/p502.pdf.
In general, you can spend tax-free
from your Health Savings Account
on all medical, dental (including
braces for your children), and
vision expenses, chiropractic
visits, and even acupuncture, but
not on your insurance premium,
unless you are unemployed and are
collecting Federal unemployment
benefits.
Health Savings Account deductible
and out-of-pocket maximums allowed
by the Health Savings Account law
for 2007 are found
here. |