Flex-Ed: Think before you "double dip" with your FSA!

Whether you're new to flexible spending accounts (FSAs) or consider yourself to be a tax-free wizard, you've probably been warned about "double dipping." And if you've read the fine print on any claim you've submitted, you may have already stated you won't double dip.

Basically, double dipping is being reimbursed for the same expense twice, which can happen a lot of ways when managing your FSA. While it's not technically illegal, it's highly unethical and could get you in serious trouble with your employer.

Why? Because by claiming FSA reimbursement you're unable to seek payment for things already paid for pre-tax, or things you intend to pay with another tax-free health account. This can happen without even knowing it.

Can I use my FSA for travel immunizations?

Travel season is coming! And those vacation days you've been saving up all winter are ready to use. It's time to get on a plane and go somewhere fun while the sun is shining and the weather is warm.
Though you can't use your flexible spending account (FSA) to pay for the trip itself, you can use it to cover the costs of necessary travel vaccines for your summer vacation, no matter where your journey takes you.

Tax Facts: Who can I cover with my HSA?

You already know that an HSA is a great way to save for future healthcare costs. You can make tax-free HSA contributions as long as you have coverage under a qualified high-deductible health plan (HDHP).

Then you can withdraw the money to spend on IRS-approved medical costs — still tax-free — or you can just let it keep rolling over, from one year to the next. The money earns interest along the way, and eventually using it as an emergency fund, or as an extra retirement account, to cover your long-term care costs.

But people might be a little fuzzy on whose medical care you can pay for with tax-free HSA money. They don't have to be covered under the same health insurance policy you have, and in some cases you can't use your HSA funds to pay for medical care for a person who is covered under your policy. Let's take a look at how this works.

A quick overview

In Publication 969, the IRS clarifies that you can withdraw tax-free money from your HSA to pay for qualified medical expenses for:

• Yourself
• Your spouse (regardless of whether you file taxes jointly or separately)
• Any dependents you claim on your tax return (your children, or a qualifying relative dependent) and any children who are claimed on your ex-spouse's tax return
• Anyone you could have claimed as a dependent, but weren't able to because he or she
  • filed a joint tax return (for example, your married teenage kid who files a joint return with his or her spouse)
  • earned more than $4,150 (in 2018), or you (or your spouse, if you file jointly) could be claimed as a dependent on someone else's tax return.

As long as the person is in one of the above categories, you can reimburse yourself for the cost of their qualified medical expenses with tax-free money from your HSA. It doesn't matter whether the person was covered under your HDHP, or even whether they had health coverage at all.

Let's clarify with some examples:

Spouse on Medicare, young adult child on parent's HDHP

You're 60, your husband is 66, and you've got a 25-year-old daughter. You've kept your daughter on your health insurance, because the coverage that her employer offers is more expensive. You've got an HDHP through your employer, which covers you and your daughter. Your husband is on Medicare.

You're allowed to contribute the full family amount to your HSA, because your HDHP is covering both yourself and your daughter. But you can only use your HSA funds to pay for your own medical care and your husband's. You can't use it to pay for your daughter's care, because you can't claim her as a dependent.

This is a good example of how the tax rules (which pertain to HSA contributions and withdrawals) are separate from the insurance rules (which pertain to who is allowed to be covered under your plan).

It's also worth noting that your daughter can open her own HSA, since she's covered by your HDHP but files her own taxes. (She would not be able to contribute to her own HSA if she were still your tax dependent.) She can contribute the full $6,900 to her HSA, since she's covered under a family HDHP.

And if you want, you can make contributions to her HSA on her behalf. She would then be able to withdraw funds from her own HSA to cover her own medical expenses.

Spouses have separate health plans, dependent child covered under university insurance

You and your wife each have coverage through your own employers. You have an HDHP that just covers yourself, while your wife has a non-HDHP for her own coverage. You have a 20-year-old son who is a full-time college student.

He's enrolled in the non-HDHP health insurance plan that his college offers. You and your wife file a joint tax return, and claim your son as a dependent (as long as he's a student, you can claim him as a dependent until he turns 24).

You can contribute $3,500 to your HSA in 2019, since you have self-only HDHP coverage. But you can use the money in your HSA to pay for qualifying medical expenses for yourself, your wife, and your son.

Divorced mom who supports elderly parents and does not have custody of her daughter

You and your ex divorced a few years ago, and your ex, who has primary custody, claims your daughter as a tax dependent. Your elderly parents live with you and you claim them as qualifying relative dependents.

Your parents are enrolled in Medicare, your daughter is covered under your ex's health plan, and you have a non-HDHP plan through your current employer. But your previous employer offered an HDHP, and you stashed away some money in an HSA while you worked there.

You can't contribute any more money to your HSA, unless you switch to another qualified HDHP. But you can use the money that's left in your HSA to cover qualified medical expenses for yourself, your daughter, and your parents (parents are only eligible if qualifying relative dependents, like we mentioned above).

Even though your daughter is not your tax dependent, the IRS considers her to be your dependent (because she qualifies as a dependent for whom you could have claimed) for the purpose of being able to use your HSA funds to cover her medical expenses.

There are a lot of things to keep in mind when it comes to paying for family healthcare with HSA funds. And you should definitely contact your HSA administrator if you have any questions about your own family situation. But know that a little research can result in a lot of security down the line.

Want to purchase guaranteed HSA-eligible items? Click here!

Source: Louise Norris of HSAStore.com 

Moving Forward in the Mainstreaming of Autonomous Vehicles

A few years ago, autonomous vehicles were as much a wild idea as anything, even though automakers were promising fully autonomous vehicles (AV) by 2020.

Here it is, 2019, and while fully autonomous vehicles may not hit the streets next year, they are not far off.

Improving Your Well-being May Help Lower Your Health Care Costs

Health care costs continue to rise, and it can feel as though there is nothing you can do to combat the expenses—but there is. Taking control of your overall well-being can greatly lower your health care costs.

Cyber Risks & Liabilities--Cyber Security for Small Businesses

High-profile cyber attacks on companies such as Target and Sears have raised awareness of the growing threat of cyber crime. Recent surveys conducted by the Small Business Authority, Symantec, Kaspersky Lab and the National Cybersecurity Alliance suggest that many small business owners are still operating under a false sense of cyber security.

What happens to your HSA if you're 65 and still earning income?

When you hit the milestone age of 65, there are a number of financial considerations you'll need to work out. Mostly, assessing your retirement income and making adjustments to your budgets accordingly.

As for your health savings account, the entire HSA landscape changes once you hit 65. We'll go over the shifts that happen with your HSA, and what you'll need to keep in mind if you're still working during your retirement years.

Real Money: Keeping your health in place when it's time to move

As someone who moved four times in the last three years, I know all too well the stress that follows when it comes to preparing to live in a new place. There's packing, forwarding your mail, learn about your new neighborhood … and health care.

That's right. I'm not just talking about how to not pull your back when moving boxes (though that's important, too). It has to do with making sure your entire family is prepared. Here's what to do to keep your health on point when life gets turned upside down.

Changes are coming to paid leave. Here’s what employers should know

A growing number of states and local governments are enacting their own paid leave policies. These new changes can be difficult for employers to navigate if they don’t understand the changes that are happening.

Trump Announces Plan to Combat Surprise Medical Billing

On May 9, 2019, President Donald Trump delivered a speech criticizing the practice of surprise medical billing. He announced a general plan of attack and hinted at a few specifics for curbing the trend.

Benefits education could lead to longer-tenured employees

Education about employee benefits needs to start a lot earlier, to make the choices clearer for workers, and to keep them happy long after they sign on the dotted line.

Flex-Ed: Using your FSA card the right way

Waiting to get reimbursed from your Flexible Spending Account (FSA) for an FSA-eligible item is tedious—filing paperwork with your FSA administrator, waiting for approval and paying out of pocket in the meantime. Luckily, the FSA debit card streamlines the process.
The FSA debit card allows you to electronically access pre-tax contributions you've allocated to your FSA. Instead of going through the process of administrator reimbursement, you'll be able to use your FSA debit card to purchase eligible items you need without having to wait.
The reason? The FSA debit card is linked to directly to your FSA. But here's the deal—FSA debit cards are slightly different than standard debit cards and come with their own set of rules.
Here's what you'll want to keep in mind.

Live Well, Work Well--Health Concerns Following a Hurricane or Flood

A natural disaster can be one of the most devastating events in a person’s lifetime. Families can be uprooted and entire neighborhoods can be destroyed in the blink of an eye. If you ever have to endure such a crisis, it is important to know what resources can help you in the wake of a disaster.

While many people are concerned with preparing for a crisis, the aftermath can be overlooked. Coping with the effects of a disaster are as important as preparing for the crisis itself.

President Trump Says Vote on GOP Health Care Plan to Come After 2020 Election

On Monday, April 1, 2019, President Donald Trump stated in a series of tweets that a vote on a Republican Party (GOP) replacement health care plan for the Affordable Care Act (ACA) won’t take place until after the 2020 elections.

Future Healthy: Could telehealth slash your health care costs?

In the era of two-hour Amazon Prime and instant movies on Netflix, we've grown to expect a certain level of convenience. These services are affordable and make our lives easier. Is it reasonable to expect the same from our health care? Telehealth says yes. If you aren't reaping the benefits of the latest in health care technology, you probably will be soon.

Bomb Threats, Suspicious Items and How To Respond

Each year, thousands of businesses, schools and other establishments are mailed suspicious items (e.g., unmarked packages) or are the target of bomb threats. These threats can be made via phone calls, letters, social media channels, emails or other similar means.

Bomb threats and suspicious items are often used to cause alarm, panic, disruption or, in extreme cases, direct harm. However these threats are made, organizations of all kinds need to take them seriously and know how to respond appropriately.

Can you use an HSA for a domestic partner?

Non-traditional family finances aren't easy to navigate and health care is no exception. Let's face it — when health savings accounts (HSAs) launched back in 2004 — inclusivity wasn't top of mind for legislators.

As a result, many families have questions about HSAs and the best ways to use their pre-tax money for medical expenses. To get a better understanding, we took a look at how the IRS interprets the law.

Does your auto insurance cover your rental car anywhere in the U.S.? How about in foreign countries?

When Larry Lipparelli rented a car in Dublin recently, he took his online travel agency’s word that the price included all required taxes and fees.

And it did — except for one.