The definition of an asset is any item of economic value owned by an individual which could be converted to cash. Common examples are cash on hand; bank accounts including checking, savings; CDs and money market accounts; and real estate.
As you may know, many companies – including Cambridge — are now offering Health Savings Accounts (HSAs) for employer-provided health care benefits. HSAs come with a debit card that employees have direct access to that are (supposed) to be used for medical-related expenses. Employees can use the debit card for non-medical expenses however those who do risk an IRS audit and can have penalties for using the HSA card for non-medical related expenses.
We recently approached the state agencies to understand if we should be verifying and counting HSA accounts as assets. At this time, the state agencies do not believe that HSA accounts should be considered as an asset.
Should you have any questions, please feel free to contact:
Kristin Strong
Email: kstrong@cambridgeres.com
Direct: 503.450.0231