On March 26, 2021, the Internal Revenue Service (IRS) posted Announcement 2021-7 which indicates amounts paid for personal protective equipment such as masks, hand sanitizer, and sanitizing wipes which will be used for the primary purpose of preventing the spread of COVID-19 are treated as amounts paid for medical care under Section 213(d) of the Internal Revenue Code. Therefore, an amount taken from a Health Savings Account (HSA) by an account owner to pay for such items, or to reimburse himself/herself for expenses already incurred for the purchase of such items, is considered an eligible expense, considering the personal protective equipment is used by the HSA owner, his/her spouse, or his/her dependents.
It is not an HSA custodian/trustee’s responsibility to determine whether an expense is an eligible expense, it is the HSA owner’s responsibility to make this determination. Ideally, an HSA owner will consult with his/her tax or legal adviser to make this determination.For an opportunity to learn more about IRAs and other tax-advantaged accounts including Health Savings Accounts and Coverdell Education Savings Accounts, consider the Wolters Kluwer IRA Library or on-demand video training offered on a variety of topics. Go here to learn more about training opportunities available to you, or you can call us at 1-800-552-9408.