First, happy April Fool’s Day!
Second, congratulations on surviving the Zombie Apocalypse! It was a crazy few days there for all of us, but now things are (mostly) back to normal.
Since coming back to work, we’ve turned our minds away from how to survive and back to HSAs. We have a couple of thoughts about how HSAs can help people in our current situation.
Qualified medical expenses
The good news is that, if you still have HSA funds available, you can use those funds on qualified medical expenses relating to many of the symptoms or injuries you or your dependents may have sustained while trying to run from zombies. Here’s a few examples:
- Bandages: We’re betting almost everyone is going to need bandages for many different types of wounds suffered during the zombie apocalypse.
- Blood-pressure monitoring devices: Seeing the walking dead caused many of us to have increased blood pressure.
- Medicine and drugs: For your medicine or pain reliever (Advil, Aspirin, Tylenol, etc.) to be considered a qualified medical expense, it must be used primarily for medical care, be legally procured and be generally accepted as medicines and drugs. Also, if the medicine is available over-the-counter, you will need a prescription or letter of medical necessity in order to use your HSA funds to purchase the medicine.
- Physical exams: A good idea for everyone, just in case.
For a list of other qualified medical expenses that may fit your particular situation, please visit our website.
The IRS has not yet come out with rules regarding HSAs and zombies, so we aren’t sure yet whether an accountholder who had an HSA and is now a zombie is legally still the owner of that HSA or if the funds transferred to a spouse or other named beneficiary on the person’s first death (before they became a zombie).
If the IRS decides that the zombie accountholder is considered “dead,” here are a few things beneficiaries need to know.
- HSAs act like most other savings accounts when the accountholder dies in that the beneficiary inherits the assets. If an accountholder dies, their spouse beneficiary can assume ownership of the account and use it for qualified medical expenses as if it was their own HSA.
- If the named beneficiary is not a spouse, the account is not treated as an HSA any longer. The funds are passed to the beneficiary(ies) or becomes part of the accountholder’s estate and subject to applicable taxes.
Even during a zombie apocalypse, HSAs have the potential to benefit many people. The HSA funds can be used for qualifying medical expenses, and it is likely that the IRS will allow named beneficiaries to take control of the HSA funds in case of an accountholders death (or undeath).
Congratulations on surviving the zombie apocalypse.
Oh, and happy April Fool’s Day again!
Nothing in this communication is intended as legal, tax, financial, or medical advice. Consult your advisors for your specific situation.