Where you one of the many who bought masks, hand sanitizer, and hand sanitizing wipes to help protect yourself from COVID-19? Did you wish you were able to use your flexible spending account (FSA), health savings account (HSA), or your health reimbursement account (HRA) for these expenses? Well, I hope you saved your receipts...
As of March 26th, 2021, the Internal Revenue Service (IRS) announced that purchases towards personal protective equipment (PPE) for “the primary purpose of preventing the spread of COVID-19 are eligible to be paid or reimbursed through flexible spending accounts (FSAs), health savings accounts (HSAs) and health reimbursement accounts (HRAs).”. The amendment also allows for FSA/HSA/HRA cardholders to use their card for future purchases of PPE. It's unclear at this time if the IRS will allow this amendment to stick post 2022, but from now until December 31st, you will be able to use your card to buy eligible masks, hand sanitizer, and other approved expenses.
What types of masks are FSA or HSA eligible?
Masks that are for “the primary purpose of preventing the spread of COVID-19 are eligible to be paid or reimburse through flexible spending accounts (FSAs), health savings accounts (HSAs) and health reimbursement accounts (HRAs).”. In order for a mask to be considered FSA eligible, the masks have to meet the standards of the Centers of Disease Control (CDC) as it relates COVID-19. This would exclude popular masks such as gaiters, face shields, and masks with vents that were not approved by the CDC as effective against the spread of COVID-19.
Here are some masks that I identified to be eligible for FSA and HSA reimbursement.
What types of Hand Sanitizer are FSA or HSA eligible?
Hand sanitizer and hand sanitizing wipes that are for “the primary purpose of preventing the spread of COVID-19 are eligible to be paid or reimburse through flexible spending accounts (FSAs), health savings accounts (HSAs) and health reimbursement accounts (HRAs).”. In order for a these items to be considered FSA eligible, they have to meet the standards of the Centers of Disease Control (CDC) as it relates COVID-19.
What if I stockpiled on PPE?
It is important to note that the IRS did not mention that they would be reconsidering the stock piling rule as it relates to purchases of PPE during COVID-19. To read more about the stock piling rule, please visit my FAQ here. It is also recommended to reach out to your benefit plan administrator on their guidance regarding reimbursement of PPE.
This new change is one of many that impacted FSA and HSA cardholders during the COVID-19 pandemic. Please check out my update on the major expansion of eligible products from the CARES act.