The IRS has announced that personal protective equipment including masks, hand sanitizer, and sanitizing wipes purchased after January 1, 2020, for the primary purpose of preventing the spread of COVID-19 are eligible medical expenses under IRC §213(d). As such, purchasers have the following options:

Option 1: The amounts can be funded through insurance.

Option 2: The amounts are eligible to be paid for or reimbursed by:

• Health savings accounts (HSAs)
• Health reimbursement arrangements (HRAs)
• Health flexible spending arrangements (health FSAs)
• Archer medical savings accounts (Archer MSAs)

Option 3: The amounts are deductible under IRC §213(a), if the taxpayer’s total medical expenses > 7.5% of the taxpayer’s adjusted gross income. Note: Amounts paid or reimbursed through an HSA, HRA, health FSA, or Archer MSA are not deductible under IRC §213(a).

Whether the plan must be amended to include this type of reimbursement depends on how the plan currently defines reimbursable expenses. The amendment must be adopted within the first calendar year after the end of the plan year in which the amendment is effective. No retroactive amendments are permitted after December 31, 2022.

The information contained in this article is provided as general guidance and may be affected by changes in law or regulation. This article is not intended to replace or substitute for accounting or other professional advice. Please consult a CBIZ professional. This information is provided as-is with no warranties of any kind. CBIZ shall not be liable for any damages whatsoever in connection with its use and assumes no obligation to inform the reader of any changes in laws or other factors that could affect the information contained herein.