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posted Jun 6, 2019 3:49:05 AM

How is a health incentive account treated? Is it the same as an HSA?

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Employee Tax Expert
Jun 6, 2019 3:49:07 AM

[edited 3-7-17]

The IRS does not use the term Health Incentive Account.  You could be referring to one of the following:  Health reimbursement arrangements (HRA), health savings accounts (HSA), or wellness program incentives, Flexible spending arrangements (FSA), or medical savings accounts (MSA)   Without knowing exactly what kind of plan you have, it's difficult to say what the tax treatment would be.  

I recommend you consult with your employer to determine exactly what kind of plan you have.  See the following link to IRS Publication 969 - "Health Savings Accounts and Other Tax-Favored Health Plans": https://www.irs.gov/pub/irs-pdf/p969.pdf

If your plan happens to be an HRA - You do not need to report anything on your tax return with regard to your HRA (Health Reimbursement Arrangement). The account is funded by your employer so there isn't anything for you to deduct and the disbursements are not taxable.  See the following link for more information on HRAs and a comparison to HSAs.

https://www.zanebenefits.com/blog/bid/120341/hsas-vs-hras-savings-accounts-vs-reimbursement-arrangem...