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What happens if I use the debit card for a non-eligible expense?

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What happens if I use the debit card for a non-eligible expense?
There are three options:
  • You can return the funds to the account by submitting the Reimbursement Return Form (below) within the same tax year of the non-eligible expense.
  • You can offset the amount with future expenses that are qualified during the same tax year. You must keep your documentation for your own tax purposes.
  • You can declare the amount as a prohibited transaction. You may be subject to income taxes on the amount as well as an IRS penalty.