Author Topic: HSA Distribution Question  (Read 1551 times)

kpd905

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HSA Distribution Question
« on: February 05, 2015, 08:00:50 PM »
We recently cashed out some money from my fiance's HSA because we aren't sure that she'll get access to another one, so the monthly fee will eat up the small balance.

The HSA is with UMB Bank, and to get a distribution we just had to put in how much the expense was.  So I put in the $27 for the prescription, but there was no way they would know it was a legitimate medical expense.  When might we have to show the receipt?

burly

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Re: HSA Distribution Question
« Reply #1 on: February 05, 2015, 09:03:59 PM »
I have a UMB HSA as well.  You won't have to show a receipt unless you're audited. At least with mine. However, legally, you should keep aside the amount you 'cashed' out and when you file your taxes, there's a question that asks if all proceeds from your 1099-SA were used for a approved expense.

But really, 27 bucks? I'm sure you'll find a place to use that before the end of the year. If you go to a CVS, you'd be surprised at the HSA eligible items.

kpd905

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Re: HSA Distribution Question
« Reply #2 on: February 06, 2015, 06:06:28 AM »
Good to know, I'll definitely be keeping receipts, and should probably scan some copies too.

It isn't $27 in the HSA, it has around $1500 in it.  The $27 was just for the one prescription.

kpd905

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Re: HSA Distribution Question
« Reply #3 on: February 09, 2015, 06:30:58 PM »
Alright I have one followup question on HSAs.

If we both have an HSA now, but we switch to a combined or family health insurance account in the future, will we still be able to use either one of the HSAs to pay our bills?

burly

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Re: HSA Distribution Question
« Reply #4 on: February 12, 2015, 07:52:30 PM »
I believe the short answer is yes, just what you contribute changes.

This site is a good resource for HSA (hence the name) - https://www.hsaresources.com/faq/

To answer your question from the FAQ above:
Quote
11. My wife and I have family coverage, can we both open an HSA?
Yes. You may both open an HSA however, the total amount that may be contributed to your HSAs is still the contribution limit (see Contribution Limits below).