Publication 969 (2023): Health Savings Accounts and Other Tax-Favored Health Plans

This publication, officially titled "Health Savings Accounts and Other Tax-Favored Health Plans," is an IRS resource (Publication 969) that explains the rules and benefits of various tax-advantaged healthcare accounts and plans.

What is Publication 969?

Publication 969 is an official Internal Revenue Service (IRS) resource that explains the rules and benefits of various tax-advantaged health plans available in the United States. It covers:

A. Health Savings Accounts (HSAs): Accounts used to pay for qualified medical expenses with tax-free dollars.

B. Medical Savings Accounts (MSAs): Similar to HSAs, but less common and only available to certain individuals with specific health plans.

C. Health Flexible Spending Arrangements (FSAs): Accounts used to pay for qualified medical and dependent care expenses with pre-tax salary contributions.

D. Health Reimbursement Arrangements (HRAs): Employer-funded accounts used to reimburse employees for qualified medical expenses.

What you'll find inside Publication 969:

A. Eligibility requirements: Explains who can participate in each plan based on factors like health insurance coverage and employment status.

B. Contribution limits: Details the maximum amount you can contribute to each plan for 2024, considering factors like family coverage and age.

C. Tax benefits: Explains the tax advantages associated with each plan, including tax-free contributions, tax-free growth of funds, and tax-free withdrawals for qualified medical expenses.

D. Qualified medical expenses: Lists the types of medical expenses for which you can use funds from each plan.

E. Spending and carryover rules: Explains the rules for using funds within the plan year and any available options for carrying over unused funds to the next year.

F. Reporting requirements: Clarifies how to report contributions, distributions, and other information related to each plan on your tax return.

For the current year's Publication 969, click here.

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