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2019 HSA contribution deadline extended to July 15, 2020 due to COVID-19

 

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The federal income tax filing deadline has been extended from April 15, 2020 to July 15, 2020 (IRS Notice IR-2020-58). Tax payers can also defer federal income tax payments from April 15, 2020 to July 15, 2020 without normal penalties and interest regardless of the amount owed.  This July 15 deadline extension only applies to federal taxes; check your state’s tax filing deadline as it may vary by state.

As a result, the amount of time that individuals have to make 2019 health savings account (HSA) contributions has also been extended to July 15. See the Filing and Payment Deadline Q&A page at irs.gov for more information.

  •  The HSA contributions deadline extension will not impact any 2019 IRS 1099-SA forms necessary for filing taxes, which show 2019 HSA distributions. 
  •  2019 IRS form 5498-SA (which is not required for filing taxes, but is informational only) will be updated for any 2019 HSA contributions made through the July 15 contribution and filing deadline.
  • If you have already filed your 2019 taxes or have additional questions regarding tax impact, please consult a tax professional.
          

Click here for the latest developments and up-to-date information on regulation changes related to health care spending and savings accounts.

Important note: All major health plan insurers have waived member cost sharing, including copays, coinsurance and deductibles for COVID-19 diagnostic testing provided at approved locations in accordance with CDC guidelines for all commercial insured, Medicaid and Medicare members.

Three major health plans, including UnitedHealthcare, have waived member cost sharing for the treatment of COVID-19 through May 31, 2020 for all fully insured commercial, Medicare Advantage and Medicaid plans. Check with your individual plan to determine your specific coverage.

This means that HSA funds are not required for COVID-19 diagnostic testing and treatment (per the above criteria). In the event that a plan is not waiving these costs, individuals will be able to use HSA funds. See IRS Notice 2020-15 at irs.gov for more details. 

Optum Bank will continue to monitor developments to ensure you are armed with critical information that impacts you and your employees so you know what steps to take.