Updates to tax-advantaged accounts

The following updates have been made to tax-advantaged accounts, including flexible spending accounts (FSAs) and health savings accounts (HSAs) as a result of government guidance and legislation passed in response to the COVID-19 crisis.

U.S. government guidance

Personal protective equipment (PPE)

The IRS added personal protective equipment (PPE), such as masks, hand sanitizer, and sanitizing wipes to the list of eligible expenses for healthcare FSAs and HSAs if purchased for the primary purpose of preventing the spread of COVID-19, for the personal use of you and your family.

This applies to expenses dating back to January 1, 2020. While your debit card should work for new eligible expenses, you can submit new eligible expenses online at hellofurther.com or by calling Further Member Services at 800-859-2144. For HSAs, you can submit old or previously denied expenses as a new claim.

The CARES Act

The Coronavirus Aid, Relief, and Economic Security (CARES) Act removes the requirement that over-the-counter drugs must be prescribed by a physician to be eligible for reimbursement from a healthcare FSA or health savings account. If you have one of these accounts, you may use money in your account to pay for over-the-counter drugs purchased on or after January 1, 2020.

Dependent care FSAs

If, as a result of the pandemic, you are not working, or working fewer hours, or if your care provider/costs change, these qualify as permissible reasons, under current IRS rules, to change your dependent care FSA election.