Health Savings Changes

Health Savings Changes

The coronavirus has brought about changes to Health Savings Accounts (HSAs). The new guidelines will likely make the savings accounts more enticing than ever before. Here is what you need to know.

Medications

Previously, you could only make tax-free withdrawals from your HSA for prescription medications. The new rules allow you to make tax-free withdrawals for over-the-counter medications too. That includes pain relievers, cold medicine, allergy and acne medicines and much more. Keep in mind that this change is retroactive to the beginning of 2020. If you have receipts for these items, you can get reimbursed dating back to January 1 of this year.

Assorted Items

The new HSA guidelines open up many items for tax-free withdrawals. OTC meds are especially helpful, but you can now use tax-free withdrawals on items like feminine hygiene products, first aid kits, thermometers, vaporizers, nasal sprays and contacts and prescription sunglasses and glasses.

No Testing Deductible

As US News reports, HSA policies generally dictate that all expenses — aside from some preventative care fees — be subject to deductibles. Now, under the new rules, coronavirus tests and telehealth services can be covered without being subject to deductibles. While the law stipulates the tests must be covered, it’s up to your insurance company to decide whether to cover or not cover telehealth visits. Contact your insurance company for clarity on HSA-covered telehealth visits.

Premium Payments

This last HSA item isn’t new, but certainly could be helpful: You can make tax-free withdrawals to cover health insurance premiums if you’re getting unemployment benefits. As with all of these items, make sure you’re keeping detailed records and documentation to make the transactions as painless as possible.

Articles
Think Hard
Think Hard

The coronavirus likely has you concerned about your finances. This might especially be true if you’re nearing retirement and stru...

Read More

Debt or Savings?
Debt or Savings?

With millions of Americans filing for bankruptcy due to the coronavirus, stimulus checks have become essential. Even if you’re fi...

Read More

Ch-Ch-Ch-Changes: How Your Budget Has Adjusted To Coronavirus
Ch-Ch-Ch-Changes: How Your Budget Has Adjusted To Coronavirus

It’s common to at least try to start each new year off on the right financial foot. In January, you probably pledged to spend les...

Read More

Balance is Key
Balance is Key

The recent stock market fluctuations due to the coronavirus might have you thinking about rebalancing your 401(k). It could be a ...

Read More

The Best Financial Lessons I Learned From My Mother
The Best Financial Lessons I Learned From My Mother

Our mothers influence us and our financial habits more than we realize. Just by watching how they handle their money, we absorb l...

Read More

Changes Afoot
Changes Afoot

Coronavirus has already changed a lot about life as we know it. You can count on it impacting retirement, too. Here’s a look at s...

Read More

Staying On Top Of Your Finances During Coronavirus
Staying On Top Of Your Finances During Coronavirus

Although it seems like much of life is cancelled, Financial Literacy Month is not. What the country (indeed the world) is going t...

Read More

Measured Moves
Measured Moves

The outbreak of the coronavirus has hit the stock market hard, resulting in the first bear market in over a decade. In times like...

Read More

What To Do When The Markets Go Haywire
What To Do When The Markets Go Haywire

There is no way to soften the bad news COVID-19 has brought in recent weeks to the economy and the stock market. It’s important...

Read More

Website Terms of Service

Please read these "Website Terms of Service" carefully before using SavvyMoney Checkup ("site", "website"). Accessing this site, or making this site available to any third party, indicates that you have read and accept these terms.

  1. Materials. Materials in this site are copyrighted and all rights are reserved. Text, graphics, databases, HTML code, and other intellectual property are protected by US and International Copyright Laws, and may not be copied, reprinted, published, reengineered, translated, hosted, or otherwise distributed by any means without explicit permission.
  2. Links to Third-Party Sites. Linked, third-party sites from website are not under the control of the Licensor. The Licensor is not responsible for the contents of any linked site or any link contained in a linked site, or any changes or updates to such sites.
  3. Confidentiality of Codes, Passwords and Information. Licensee agrees to treat as strictly private and confidential any username, password, user ID, and all information to which you have access through password-protected areas of website.
  4. Maintenance. Licensor shall provide Licensee any new, corrected or enhanced version of the site as it becomes available. Such enhancement shall include all modifications to the site which increase the speed, efficiency or ease of use of the site, or add additional capabilities or functionality to the site, but shall not include any substantially new or rewritten version of the site.
  5. Limitation of Liability. Licensor shall not be responsible for, and shall not pay, any amount of incidental, consequential, or other indirect damages, whether based on lost revenue or otherwise, regardless of whether Licensor was advised of the possibility of such losses in advance. In no event shall Licensor's liability exceed the amount of license fees paid by Licensee, regardless of whether Licensee's claim is based on contract, tort, strict liability, product liability or otherwise.