Little known HSA Fact #1

Posted by Rob Thomas  •  January 28, 2019

Hospital parking is a “qualified” medical expense, assuming you are parking at the hospital for purposes that fall under the definition of “medical expenses.”

IRS Pub 502 is the governing document here, and under “Transportation, Car Expenses” on page 14 includes the following:

“You can include out of pocket expenses, such as the cost of gas and oil, when you use the car for medical reasons. You can’t include depreciation, insurance, general repair, or maintenance expenses.

If you don’t want to use your actual expenses for 2015, you can use the standard medical mileage rate of 23 cents a mile.

You can also include parking fees and tolls. You can add these fees and tolls to your medical expenses whether you use actual expenses or the standard mileage rate.”

More generally, on page 2 of IRS Pub 502 you will find the definition of “medical expenses” as “the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and the costs for treatments affecting any part or function of the body.” Pub 502 contains 10 pages (!) of examples of medical expenses (pages 5-15) and then says, “this list doesn’t include all possible medical expenses.”

You will want to save the receipt. Unlike FSA accounts, holders of HSAs are ultimately responsible for the proper (i.e. legal) usage of their accounts. Finally, keep in mind you can always reimburse yourself later, should you forget to include as a withdrawal today. Alternatively, you could keep the money in the HSA as a long-term investment through the brokerage feature offered by many HSA providers.

Original Post Here.

Aaron Benway, CFP, EA, HSACoach.com, ABFinancialPlanning.com. Fmr- CFO, Carlyle Group

 

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