The following tax and health reform information will be sent to all Optima Equity members.
Maximize Savings & Tax Tips
- 2010 Contributions - You can still contribute to your HSA on a tax-advantaged basis for the 2010 tax year until you file your return or Apr. 18, 2011, whichever comes first. For individual health plan members, the maximum amount is $3,050, and for family coverage, the maximum is $6,150. For accountholders age 55 and above, there is an allowable additional $1,000 "catch up" contribution
- For questions on making additional HSA contributions, please contact the HealthEquity member service team at (866) 346-5800.
- Tax Forms - As an HSA holder, you need to include information about your HSA contributions and distributions on your tax return. You will need to fill out Form 8889 with your tax return. Be sure to refer to Form 1099-SA mailed to you from HealthEquity, and your W-2 if any contributions were made pre-tax.
- A year-end tax statement is also available through the secure member site on optimahealth.com using the link to your HSA portal.
- Please consult your tax advisor for specific questions regarding tax filing or other tax advice.
Health Reform Alerts
- Penalties Doubled - Starting Jan. 1, 2011, the penalty for using your HSA funds for non-qualified medical expenses increased from 10% to 20%. In addition, keep all your itemized receipts and copies of prescriptions for over-the-counter medications in case there is an audit by the IRS.
- Over-the-Counter Drugs No Longer Qualified Expenses - As of Jan. 1, 2011, many over-the-counter (OTC) drugs and medicines, except insulin, no longer qualify as eligible medical expenses. HSA, FSA, or HRA account holders now need a doctor's prescription or Letter of Medical Necessity from a doctor to use funds to pay for or be reimbursed for OTC medications.