How to prepare for your 2011 HSA tax filing.

SelectAccount will be sending the following to both you and the IRS:

• Form 1099-SA - distributions (withdrawals) from an HSA, mailed by January 31, 2012.
• Form 5498-SA - HSA contribution information, mailed by May 31, 2012 because the IRS allows you to make contributions for the 2011 tax year until April 17, 2012. As you complete your taxes, view your contributions by signing in to SelectAccount.com.

Your employer will send a form

• If you or your employer made pre-tax contributions to your HSA in 2011, it will be noted on your W-2 Form that you receive from your employer.
• Form W-2 must be mailed by January 31, 2012.
  

You or your tax advisor will complete a form

• You will need to complete From 8889-Health Savings Accounts using the applicable information from the 1099-SA and the W-2 forms.
  
• Form 8889 is available from your tax advisor, local library, online at www.irs.gov, or by calling the IRS at 800-829-3676.

All the forms you need come with instructions to help you understand and complete them accurately. If you need assistance, contact a qualified tax advisor or the IRS at www.irs.gov or by calling 800-829-1040.

Past Topics:

Don’t forget to submit year-end FSA claims.

The year is drawing to a close, which means it’s time to submit year-end FSA claims. Here are a few simple steps you can take to make sure you use—not lose—your FSA dollars by the end of your plan year:

1. Visit the Online Member Service Center and check your available FSA balance.
2. Compile your health care receipts and submit a claim form for any eligible health care expenses.
3. If you do not have any claims to submit, review the eligible expense list for ideas on how you can spend your FSA dollars.
4. Sign up for automatic deposit (this can be done in the Online Member Service Center) and SelectAccount will submit your reimbursement directly into the checking or savings account of your choice—there’s no waiting for a check to arrive in the mail.

When submitting your FSA claims, keep these tips in mind:

• Complete the entire claim form, itemizing each line.
• Sign the claim form.
• Print clearly, using a blue or black pen so the text is dark enough.
• Tape receipts onto separate piece of paper in the order listed on the claim form.
• Include a detailed receipt that identifies the date of the service and service or product purchased. You can also include a copy of your health plan Explanation of Benefits (EOB).
• If your health plan EOB indicates that certain services were not covered by your plan, include an itemized statement from your provider that describes the service or items for which you’re being reimbursed.
• Mail or fax (NOT BOTH) the completed claim form to SelectAccount at the address on the form.

Did you know that you can get reimbursed for mileage expenses related to receiving medical care?
The Internal Revenue Service (IRS) has updated the reimbursement rate for mileage related to receiving medical care for 2012. Effective January 1, the reimbursement rate will change to 23 cents per mile. If you use your vehicle to receive medical care, you can request reimbursement from your health savings account (HSA), flexible spending account (FSA) or VEBA for that expense, to the tune of 23 cents per mile traveled. Mileage is not an eligible expense for most health reimbursement accounts (HRA).

To learn more about eligible expenses and claiming reimbursement for mileage, contact SelectAccount customer service, visit www.irs.gov, or call 1-800-829-1040.

Watch our new HSA open enrollment video
Educating yourself (and your spouse) during open enrollment just got easier. Review this new HSA open enrollment presentation at your convenience to learn what an HSA is all about.

Did you know that because your HSA is a tax-advantaged account your annual HSA contributions and balance is reported to the IRS?

That’s why you received a copy of IRS Form 5498-SA from SelectAccount. If you, your employer, or both made contributions to your HSA in 2010 - or if you had money in your account as of December 31, 2010 - SelectAccount sent Form 5498-SA to you and the IRS in late May. Here’s what you need to know about this document.

What is Form 5498-SA? Form 5498-SA is an IRS-required form that summarizes your contributions for 2010 and what your balance was on December 31.

Why am I receiving this? This is an informational form only. It allows you to compare what you reported on your tax return against what SelectAccount reported to the IRS.

Why am I receiving this now after I’ve already filed my taxes? Since contributions can be made to your HSA up to the tax filing deadline, the 5498-SA is sent in the month following the tax deadline as an informational update. You can keep track of your contributions throughout the year and ensure that you’re not over contributing to your HSA by registering with our online member service center.

What action do you need to take? Keep this form in your tax files. We recommend you review your tax filing against the form 5498-SA to be sure they match. Consult with your tax advisor or the IRS if you have any questions about your tax filing. You can reach an IRS tax advisor by calling 1-800-829-1040 or visiting www.irs.gov.

If you have questions about your HSA, contact SelectAccount customer service.

IRS Reimbursement rules spells good news for nursing moms

The IRS recently announced a change to the list of expenses for which you can request reimbursement from your health savings account (HSA) or flexible spending account (FSA) or VEBA.

Here's what's new: breast pumps and breast pump supplies (pump replacement parts, car adapters, tubing, batteries, cords, etc.) are now considered eligible expenses. This means you can file a claim for reimbursement without having to submit a Letter of Medical Necessity.

To view your account or request reimbursement, register or login to the member center.

Health Care Reform Impact for Spending Accounts

Legislative changes took effect on January 1, 2011 that changed the reimbursement of over-the-counter (OTC) drugs and medications from any personal spending account that allows for 213(d) expenses.

Learn more about health care reform by visiting the official government website. Please note that by clicking on this link you will be leaving the SelectAccount website to connect with another resource.  Please take time to read the privacy statement at the new website.

Learn more about the OTC drug and medications changes.