Can employees change their HSA election amounts?
Yes, employees can change their HSA contributions at least once per month through their employer. If payroll contributions are no longer an option, employees can contribute directly to their HSA and it will still be an above-the-line tax deduction. Please note that 2019 contributions can be made to your HSA until July 15, 2020 based on recent IRS Guidance.
Is COVID-19 testing and treatment covered under an HSA/high deductible health plan?
The IRS released guidance on March 11, 2020, clarifying that testing and treatment of COVID-19 is preventive care and therefore can be covered, pre-deductible, by a high deductible health plan. IRS Notice 2020-15 explains that this accommodation is due to the “unprecedented public health emergency posed by COVID-19.” For more information, please see our related blog post.
How has COVID-19 impacted tax filings for participants’ HSAs?
The IRS has extended the 2019 tax-filing deadline until July 15, 2020. It is important to note that the tax responsibility for HSAs does vary by state. HSA participants should check their local state tax laws to determine if local authorities have extended tax filing deadlines in line with the federal extension, or work with their tax advisor to ensure correct filing. For more information, please refer to IRS Publication 969.