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Did you Know?

The amount of time that individuals have to make 2020 health savings account (HSA) contributions has also been extended to May 17, 2021 (IRS 2021-21).

  • The HSA contributions deadline extension will not impact any 2020 IRS 1099-SA forms necessary for filing taxes, which show 2020 HSA distributions. 
  • 2020 IRS form 5498-SA (informational only; not required for filing taxes) will be updated for any 2020 HSA contributions made through the May 17th contribution and filing deadline.
  • If you have already filed your 2020 taxes or have additional questions regarding tax impact, please consult a tax professional.

On March 26, 2021, the IRS issued IRS Announcement 2021-7, which clarifies that amounts paid for certain personal protective equipment (“COVID-19 PPE”) used to prevent the spread of COVID-19, including masks, hand sanitizer and sanitizing wipes can be treated as amounts paid for medical care under § 213(d) of the Internal Revenue Code.   Employers should review their plan documents. For plans that use a broad definition under 213(d) for eligible medical expenses, an amendment is not necessary. However, for plans with a narrower definition of 213(d), the definition of eligible medical expenses may need to be amended.  Plans may be amended retroactively back to January 1, 2020.

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