Will flexible health or medical tax free employer plans accept RTC payments as a qualified cost?
Health Savings Accounts (HSAs) may be a very viable option for executing payment for an RTC provided the facility is providing legitimate medical care under the supervision of a physician. It is important to consult with your EAP provider and with a tax advisor regarding the RTC facility and the expenses incurred to see if they are considered deductible in the eyes of the Internal Revenue Service. If that is the case, then distributions from qualified medical savings accounts can generally occur tax-free and without penalty.
Related Questions
- How much of an employer’s medical costs are related to poor health habits that could be changed through a wellness training program?
- Can I still use my Flexible Spending Account (FSA) and Health Reimbursement Arrangement (HRA) for tax free reimbursement?
- Is there an IRS approved list of medical expenses that I can spend my tax free Health Savings Accounts funds on?
