A new ruling from the IRS allows Health Savings Accounts to be used for TAX FREE genetic testing
Until recently, Health Savings Accounts (HSAs) could only be used to pay for medical expenses related to the treatment or prevention of a specific illness. However, a new 2019 ruling by the Internal Revenue Service means that HSA holders can now use these funds to cover some or all of the costs of many 23andMe services.
For many, this ruling means that even more people are going to have access to valuable genetic testing that can help them better understand the way their bodies work, and thus create a more informed plan for their personal healthcare.
What 23andMe Services Are Covered by HSAs?
Not all of the services provided by 23andMe are eligible to be covered by a Health Savings Account, but the primary genetic testing services are.
Here is what is currently covered in 2019:
- Health & Ancestry Service
- Health Service Upgrade (for original 23andMe Ancestry Service Customers)
- Health & Ancestry Service Lab Fee (for customers who purchased their kit from an authorized retailer)
- Health & Ancestry Service Chip Upgrade
How Do I Document This Expense for Reimbursement?
When you are ready to make a reimbursement claim, you can visit the 23andMe eligibility calculator to get a claim receipt for your purchase.
Keep this in your records in case you ever need to justify your HSA withdrawals to the IRS.
How Health Savings Accounts Can Slash Your Taxes
The real magic behind Health Savings Accounts is that they allow individuals to deposit funds, tax free, into a savings account where it can accrue interest (also tax free). When you need money to pay for out-of-pocket medical expenses, you can withdraw funds from your HSA to take care of it. All 100% tax free.
Don’t have an HSA yet? We can help with that.
Healthcare consumers who have an HSA-qualified plan are able to set up their 2020 accounts in a matter of minutes. We can help you see which HSA-qualified plans are available to you, as well as provide you with a broader overview of your options in general.
I’ve been a long time advocate for health insurance savings. I’m always willing to help anyone figure out the best way to save money on their health insurance. I also love living in Colorado in the Fort Collins area. What a great state to live in!