Health Flexible Spending Arrangement (FSA)
If it is qualified as an accident or health plan, the amount of your salary deduction and reimbursement of your medical care expenses are nontaxable.
Qualified HAS distribution: this distribution is a direct transfer to your HAS trustee. Generally, it's nontaxable and not deductible. See Pub 969 for more details.
Health reimbursement arrangement (HRA)
If it is qualified as an accident or health plan, coverage and reimbursement are nontaxable.
Qualified HRA distribution: same as HAS distribution.
Health Savings accounts (HAS)
You, your employer, or your family can make contribution to your HAS.
- Contributions other than employer contributions are deductible on your return whether or not you itemize deductions.
- Contributions by your employer is excluded from income.
- Distribution to pay qualified medical expenses is excluded from your income.
- Distribution not used for qualified medical expenses is included in your income.
Special rules apply for partnership or S-corp
Qualified HAS funding distribution: you can make a one-time distribution from your individual retirement account (IRA) to an HAS and you generally will not include any of the distribution in your income.
PSQ
Source: http://www.irs.gov
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