Pub 969
Health Savings Accounts (HSAs) are tax-advantaged accounts for employees enrolled in a high-deductible health plan. The IRS Publication 969, Pub 969 for short, provides guidance on HSA eligibility, contribution limits, and distribution rules.
IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans provides general rules regarding Health Savings Accounts (HSAs) — tax-deductible accounts that individuals can open to pay for qualified medical expenses, as defined by the IRS. Pub 969 covers eligibility, contribution limits, and distribution rules for HSAs, as well as for Archer MSAs, Medicare Advantage MSAs, and flexible spending arrangements (FSAs). Also covered are qualified prescription drug expenses, medical, dental, and long-term care insurance premiums, certain specified disease and accident coverage deductibles, and lactation supplies. This is a companion to IRS Publication 502, Medical and Dental Expenses.
IRS Publication 969 is periodically updated by the IRS to reflect any changes in tax laws or regulations. It is important to consult the most recent version of the publication to ensure compliance with the latest rules and guidelines. Pub 969 also references other relevant IRS publications and forms that taxpayers may find useful for further information or reporting purposes. These resources can assist individuals in understanding the requirements, completing necessary tax forms, and fulfilling their tax obligations associated with HSAs, Archer MSAs, and health FSAs.
What Does Pub 969 Cover?
Health Savings Accounts (HSAs): HSAs are tax-advantaged savings accounts available to individuals with high-deductible health plans (HDHP). The publication explains who is eligible for an HSA, the contribution limits, the tax advantages, the qualified medical expenses that can be paid with HSA funds, the rules for rollovers and transfers, and the penalties for non-qualified expenses.
Archer MSAs: Archer MSAs are tax-advantaged savings accounts available to individuals covered under a high-deductible health plan by their employer or self-employed. Publication 969 explains the eligibility criteria, contribution limits, tax advantages, qualified medical expenses, and distribution rules for Archer MSAs.
Health FSAs: Health FSAs are employer-sponsored plans that allow employees to set aside pre-tax dollars to pay for qualified medical expenses. The publication covers the rules for participating in a health FSA, contribution limits, eligible expenses, the “use it or lose it” provision, and the interaction between health FSAs and other health-related accounts.
IRS Publication 969 is available for free on the official IRS website. It can be downloaded in PDF format or viewed online. Additionally, printed copies may be ordered from the IRS if needed.
