- Small Businesses and Self-Funding Medical Benefits
ACA “Pooled” Rates vs. Self-Funded Strategies There is a lot of talk about self-funded or level-level funded medical plans as a way for companies to save money on health benefits… […]
- Read More
- Employers and Ex-Military Employees Benefits
The Hampton Roads Metropolitan area probably has the highest percentage of ex-military employees in the nation. Ex-military employees typically do not elect to enroll in employer-sponsored health plans. This lowers […]
- Read More
IRS: Health FSAs Cannot be Used for Insurance Premiums
by Gregg Kennerly | Published Thursday, August 31, 2017
A recently released IRS letter reaffirms the agency’s view that funds from a health flexible spending arrangement (health FSA) may notbe used to reimburse health insurance premium payments or Medicare premium expenses.
Certain Premiums May be Deducted
The IRS letter points out that health insurance premium payments, including those for Medicare, may qualify for purposes of the itemized deduction for medical expenses. However, only premiums for which the taxpayer is not claiming a separate credit or deduction can be included as part of a medical expenses deduction. Additional restrictions apply to this deduction. For more information, please see IRS Publication 502, Medical and Dental Expenses.
Click here to read the IRS letter in its entirety.
For additional information on health FSAs, visit our HSAs, FSAs, and Other Tax-Favored Accounts section.