Publication 969 - Health Savings Accounts And Other Tax-Favored Health Plans

bring these children home by looking at the photographs

We respond to many letters by telephone. Therefore, it

and calling 1-800-THE-LOST (1-800-843-5678) if you rec-

would be helpful if you would include your daytime phone

number, including the area code, in your correspondence.

ognize a child.

You can email us at *taxforms@irs.gov. (The asterisk

must be included in the address.) Please put “Publications

Introduction

Comment” on the subject line. You can also send us

comments from , select “Com-

ment on Tax Forms and Publications” under “Information

Various programs are designed to give individuals tax

about.”

advantages to offset health care costs. This publication

Although we cannot respond individually to each com-

explains the following programs.

ment received, we do appreciate your feedback and will

•

Health savings accounts (HSAs).

consider your comments as we revise our tax products.

•

Medical savings accounts (Archer MSAs and Medi-

Ordering forms and publications. Visit

care Advantage MSAs).

formspubs/

to download forms and publications, call

•

1-800-829-3676, or write to the address below and receive

Health flexible spending arrangements (FSAs).

a response within 10 days after your request is received.

•

Health reimbursement arrangements (HRAs).

Internal Revenue Service

1201 N. Mitsubishi Motorway

An HSA may receive contributions from an eligible indi-

Bloomington, IL 61705-6613

vidual or any other person, including an employer or a

family member, on behalf of an eligible individual. Contri-

butions, other than employer contributions, are deductible

Tax questions. If you have a tax question, check the

on the eligible individual’s return whether or not the individ-

information available on IRS.gov or call 1-800-829-1040.

ual itemizes deductions. Employer contributions are not

We cannot answer tax questions sent to either of the

included in income. Distributions from an HSA that are

above addresses.

used to pay qualified medical expenses are not taxed.

An Archer MSA may receive contributions from an eligi-

Health Savings Accounts

ble individual and his or her employer, but not both in the

same year. Contributions by the individual are deductible

(HSAs)

whether or not the individual itemizes deductions. Em-

ployer contributions are not included in income. Distribu-

A health savings account (HSA) is a tax-exempt trust or

tions from an Archer MSA that are used to pay qualified

custodial account that you set up with a qualified HSA

medical expenses are not taxed.

trustee to pay or reimburse certain medical expenses you

A Medicare Advantage MSA is an Archer MSA desig-

incur. You must be an eligible individual to qualify for an

nated by Medicare to be used solely to pay the qualified

HSA.

medical expenses of the account holder who is enrolled in

No permission or authorization from the IRS is neces-

Medicare. Contributions can only be made by Medicare.

sary to establish an HSA. When you set up an HSA, you

The contributions are not included in your income. Distribu-

will need to work with a trustee. A qualified HSA trustee

tions from a Medicare Advantage MSA that are used to pay

can be a bank, an insurance company, or anyone already

qualified medical expenses are not taxed.

approved by the IRS to be a trustee of individual retirement

arrangements (IRAs) or Archer MSAs. The HSA can be

A health FSA may receive contributions from an eligible

established through a trustee that is different from your

individual. Employers may also contribute. Contributions

health plan provider.

are not includible in income. Reimbursements from an FSA

Your employer may already have some information on

that are used to pay qualified medical expenses are not

HSA trustees in your area.

taxed.

An HRA must receive contributions from the employer

If you have an Archer MSA, you can generally roll

only. Employees may not contribute. Contributions are not

it over into an HSA tax free. See

Rollovers,

later.

TIP

includible in income. Reimbursements from an HRA that

are used to pay qualified medical expenses are not taxed.

Comments and suggestions. We welcome your com-

What are the benefits of an HSA? You may enjoy sev-

eral benefits from having an HSA.

ments about this publication and your suggestions for

future editions.

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You can claim a tax deduction for contributions you,

You can write to us at the following address:

or someone other than your employer, make to your

HSA even if you do not itemize your deductions on

Internal Revenue Service

Form 1040.

Individual Forms and Publications Branch

•

SE:W:CAR:MP:T:I

Contributions to your HSA made by your employer

1111 Constitution Ave. NW, IR-6526

(including contributions made through a cafeteria

Washington, DC 20224

plan) may be excluded from your gross income.

Page 2

Publication 969 (2010)

Publication 969 - Health Savings Accounts And Other Tax-Favored Health Plans - 2010 Page 2

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