Embark on Spending for Health Part 5: Hidden Treasure

Spending for Health may be the least costly healthcare we purchase with payoffs that extend far beyond tax savings.

Tax Treatment of Wellness Incentives
Be cautious about assuming incentive payments for attending seminars or benefits like gym memberships will be non-taxable solely because they are included in your employer’s wellness plan. The IRS continues to look beyond the wrapper at wellness plans to determine whether the benefits constitute taxable compensation. As an alternative to cash payments or other taxable incentives your employer may structure a wellness program with incentives that increase contributions to a Flexible Spending Account (FSA), Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA). FSAs, HSAs and HRAs are used in conjunction with a High Deductible Health Plan (HDHP) to meet healthcare needs up to the point a High Deductible Health Plans kicks in. When properly structured, employer contributions to FSAs, HSAs and HRAs are not taxable income to the employee.

Hidden Treasure: Longevity
According to Monique Tello, MD, MPH’s 2018 article in Harvard Medical School’s Health Blog researchers from the Harvard T.H. Chan School of Public Health conducted a massive study of over 120,000 participants using 28-34 years of data and found these 5 healthy lifestyle characteristics have a large impact on longevity…

Join SoundCPA Insights for Individuals this summer on a 5 Part Series: Embark on Spending for Health

This Week is Part 5: Hidden Treasure