1 In response to the COVID-19 pandemic, Congress passed legislation providing that HDHPs may cover telehealth and other remote healthcare services without a deductible or with a deductible below the minimum annual HDHP deductible for plan years commencing on or before December 31, 2021.
2 Any interest or earnings on the assets in the HSA are tax-free while held in the account. You can receive tax-free distributions from your HSA, including distributions of interest or earnings, to pay or be reimbursed for qualified medical expenses you incur after you establish the HSA. If you receive distributions for other reasons, the amount you withdraw will be subject to income tax and, if withdrawn before age 65, death, or disability, may be subject to an additional 20% federal tax. You may be able to claim a tax deduction for contributions you or someone other than your employer makes to your HSA. We recommend you contact qualified tax or legal counsel before establishing an HSA.
Merrill, its affiliates and financial advisors do not provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
This material should be regarded as educational information on health care considerations and is not intended to provide specific health care advice. If you have questions regarding your particular situation, please contact your legal or tax advisor.