Various programs are designed to give individuals tax advantages to offset health care costs. This publication explains the
following programs.
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Health savings accounts (HSAs).
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Medical savings accounts (Archer MSAs and Medicare Advantage MSAs).
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Health flexible spending arrangements (FSAs).
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Health reimbursement arrangements (HRAs).
An HSA may receive contributions from an eligible individual or any other person, including an employer or a family member,
on behalf of an eligible individual. Contributions, other than employer contributions, are deductible on the eligible individual's
return whether or not the individual itemizes deductions. Employer contributions are not included in income. Distributions
from an HSA that are used to pay qualified medical expenses are not taxed.
An Archer MSA may receive contributions from an eligible individual and his or her employer, but not both in the same year.
Contributions by the individual are deductible whether or not the individual itemizes deductions. Employer contributions are
not included in income. Distributions from an Archer MSA that are used to pay qualified medical expenses are not taxed.
A Medicare Advantage MSA is an Archer MSA designated by Medicare to be used solely to pay the qualified medical expenses of
the account holder who is enrolled in Medicare. Contributions can only be made by Medicare. The contributions are not included
in your income. Distributions from a Medicare Advantage MSA that are used to pay qualified medical expenses are not taxed.
A health FSA may receive contributions from an eligible individual. Employers may also contribute. Contributions are not includible
in income. Reimbursements from an FSA that are used to pay qualified medical expenses are not taxed.
An HRA must receive contributions from the employer only. Employees may not contribute. Contributions are not includible in
income. Reimbursements from an HRA that are used to pay qualified medical expenses are not taxed.
Comments and suggestions.
We welcome your comments about this publication and your suggestions for future editions.
You can write to us at the following address:
Internal Revenue Service
Individual Forms and Publications Branch
SE:W:CAR:MP:T:I
1111 Constitution Ave. NW, IR-6526
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number,
including the area code, in your correspondence.
You can email us at
*taxforms@irs.gov. (The asterisk must be included in the address.) Please put “
Publications Comment” on the subject line. Although we cannot respond individually to each email, we do appreciate your feedback and will consider
your comments as we revise our tax products.
Ordering forms and publications.
Visit
www.irs.gov/formspubs to download forms and publications, call 1-800-829-3676, or write to the address below and receive a response within 10 days
after your request is received.
Internal Revenue Service
1201 N. Mitsubishi Motorway
Bloomington, IL 61705-6613
Tax questions.
If you have a tax question, check the information available on
www.irs.gov or call 1-800-829-1040. We cannot answer tax questions sent to either of the above addresses.
