by Kristi R. Gauthier, Esq.
In 2003, the Medicare Prescription Drug, Improvement and Modernization Act added Section 223 to the Internal Revenue Code, permitting eligible individuals to establish Health Savings Accounts (HSAs).
HSAs are medical savings accounts to which individuals enrolled in high deductible health plans (HDHPs) and their respective employers may make pre-tax contributions.
The funds held in an HSA are owned by the individual and may be withdrawn tax-free at any time to pay for qualified medical expenses incurred for the individual, his or her spouse or dependents.
The U.S. Treasury Department and the Internal Revenue Service recently issued a notice (No. 2008-59) providing additional guidance on HSAs. The notice was issued in the form of questions and answers addressing a wide variety of HSA issues, including:
- The employees eligible to participate in HSA plans
- HDHP administrative issues ...(register to read more)