Health Savings Account Frequently Asked Questions

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Health Savings AccountFrequently AskedQuestionsResource LibraryThis FAQ document gives you easy answers to most common Health Savings Account(HSA) questions. Simply click the question below, and it will take you to the answer.Question IndexSection 1:General OverviewSection 2:HSA Eligibility57Q1:What is a Health Savings Account (HSA)?Q10: Who is eligible for an HSA?Q2:What is an HSA-qualified High-DeductibleHealth Plan (HDHP)?Q11: Can I be covered by another health planand still be eligible for an HSA?Q3:What are the advantages of an HSA?Q4:How do HSAs work?Q5:Is money “safe” in the YSA HSA?Q12: Can I open an HSA and also enroll in ahealth care Flexible Spending Account(FSA) with my employer?Q6:Are assets in an HSA protected frombankruptcy (any type), similar to howassets in a 401(k) or pension planare protected?Q7:Does my HSA receive interest?Q8:Why should I consider enrolling in theHDHP with an HSA?Q9:Does an HSA have to have money init before it can be used to paya provider?Q13: What is a Limited Purpose FlexibleSpending Account (LPFSA)?Q14: How is an HSA different from an FSA?Q15: What other types of health coverage(permitted coverage) can I maintainwithout losing eligibility for an HSA?Q16: Can I have a joint HSA with my husbandor wife?Q17: If an HDHP medical plan covers domesticpartners, are domestic partners eligibleto open an HSA?Q18: What happens to the money in an HSA ifHDHP coverage is no longer maintained?Q19: A s an expatriate employee, can I contributeto an HSA?Q20: As an expatriate employee, can I open anew HSA?Q21: Can a nonresident alien open an HSA?Health Savings Account Frequently Asked Question Resource Library

Question IndexSection 3:Establishing an HSA10Q37: If an HDHP is on a plan year (starts on adate other than January 1), how does thatwork with HSA contribution maximums?Q22: How is an HSA established or opened?Q38: What is meant by the IRS “testing period”?Q23: Can I title my HSA in the name of a trust?Q24: Does YSA provide statements?Q39: What does the Special Rule—Last MonthRule mean?Q25: Does the HSA have a debit card toaccess funds?Q40: How does my spouse’s health coverageimpact my contribution limits?Q26: What if the card doesn’t work at thepoint of sale or the cashier says thetransaction has been declined?Q41: How does my domestic partner’s healthcoverage impact my contribution limits?Q27: Can I request a duplicate card for otherfamily members?Q28: What should I do if the card is lostor stolen?Section 4:HSA ContributionsQ42: How does turning age 55 affect an HSA(“catch-up” contributions)?Q43: If both spouses are 55 and older, are twocatch-up contributions allowed?Q44: How do contributions work if bothspouses have individual HSAs?11Q29: How do I contribute to my HSA?Q30: Who may contribute to an HSA?Q31: In what form may I make contributionsto an HSA?Q32: What is the dollar amount of HSAcontributions allowed each year?Q33: Can a contribution made in December beapplied to the following tax year?Q34: If I already have an HSA set up through aformer employer, can the new employercontribute to that HSA?Q35: If my employer gives the full employercontribution early in the plan year, whathappens if I leave/am terminated?Q36: Can my employer take its contributionsmade in error out of an HSA?Q45: Can I make contributions if I am stillworking but enrolled in Medicare?Section 5:HSA Rolloversand Transfers16Q46: Are rollover contributions toHSAs permitted?Q47: What are the rules regarding rolloversand transfers of HSA funds?Q48: What are the rules regarding the rolloverof IRA funds into an HSA?Section 6:Distributions FromYour HSA17Q49: When can I take distributions frommy HSA?Health Savings Account Frequently Asked Question Resource Library2

Question IndexQ50: What expenses are considered “qualifiedmedical expenses”?Q51: When am I subject to the 20 percentpremature distribution penalty tax?Q52: Do the HSA funds have to be used by theend of the year? Will the funds be lost ifnot used by the end of the year?Q53: Will the employer or YSA askfor receipts?Q54: How does the IRS know that thedistributions from the HSA are used forqualified expenses if UMB or my employerisn’t responsible for substantiation?Q55: How long do I have to request areimbursement for qualifiedmedical expenses?Q56: Can I use HSA funds to pay insurancepremium expenses?Q57: How do I get my money out of my HSA topay for qualified medical expenses?Q58: What does it mean to establish an HSA?Q59: What if I had an HSA before openinga YSA HSA? What is the HSAestablishment date then?Q60: If the HSA is already established but notfully funded, can future contributions beused to pay for expenses incurred afterthe HSA was established?Q61: Is the HSA “established” on the samedate the HDHP is effective?Q62: What if I have medical expenses that aremore than the amount of money I havein my HSA?Q63: Can I use the money in my HSA for taxdependents even if they are not coveredby my insurance plan?Q64: Can HSA funds be used to pay for medicalexpenses incurred by a child under theage of 26 and covered by my HDHP eventhough the child is not claimed as adependent on my tax return?Q65: What are the rules that apply to an HSApursuant to a divorce decree?Q66: How is a child of divorced or separatedparents treated relative to qualifiedmedical expenses?Q67: What are the HSA guidelines regardingdisbursement from the HSA fordomestic partners?Q68: What happens if an HSA distribution ismade as the result of a factual mistake?Q69: What happens if I withdraw moneyfrom my HSA to pay a medical bill, butam later reimbursed by my insurancecompany for that medical expense?Section 7:HSAs and Medicare22Q70: What happens when I become eligiblefor Medicare?Q71: If I’m still employed and have healthinsurance through my employer, is ita requirement that I also enrollin Medicare?Q72: What happens after I enroll in Medicare?Q73: What happens to the money in an HSAafter I turn 65?Q74: How does enrollment in Medicare affectmy spouse?Q75: What happens to my HSA if Ibecome disabled?Health Savings Account Frequently Asked Question Resource Library3

Question IndexSection 8:Death of an HSAAccount HolderQ86: Who is responsible for determining theamount of eligible contributions?25Q76: What happens to the HSA uponmy death?Q77: What are the tax consequences of HSAdistributions following my death?Q78: If the account beneficiary of an HSA is mysurviving spouse, may my spouse makecontributions to the account?Section 9:Tax Treatmentof HSAs26Q79: What are the tax implications forparticipating in an HSA?Q80: What is the tax treatment of myHSA contributions?Q81: What does it mean to make a “post-tax”contribution? What do I need to do whenfiling my income tax return?Q82: What does it mean to make a“before-tax”contribution? What doI need to do when filing my incometax return?Q83: Do contributions to an HSA in anyway affect my ability to contributeto an individual retirementaccount (IRA)?Q84: When is the deadline for contributionsto an HSA for any particular year?Q87: If my employer has a qualified HDHPthat I’m eligible for but don’t participatein because I receive benefits through myspouse’s employer’s plan, can I still takepart in an HSA?Q88: How is a rollover treated?Q89: What is the tax treatment of earnings onamounts in an HSA?Q90: Are there any tax consequences topledging the HSA as security fora loan?Q91: What happens if I receive an HSAdistribution as the result of a mistakeof fact due to reasonable cause?Q92: What medical expenses are eligiblefor tax-free distributions froman HSA?Q93: Why did I receive IRS Form 5498-SA?Q94: Why did I receive IRS Form 1099-SA?Q95: How do I report distributions from myHSA to the IRS?Q96: Where can I go for more informationabout the tax treatment of HSAs?Q97: Is it possible to have both an MSAand an HSA or more than one HSA?If so, how are contributionmaximums affected?Q98: Can an MSA be rolled over to an HSA?How does that affect taxes andannual limits?Q85: What happens when HSA contributionsexceed the amount that may be deductedor excluded from gross income(excess contributions)?Health Savings Account Frequently Asked Question Resource Library4

Section 1:General OverviewQ1: What is a Health Savings Account (HSA)?An HSA is a tax-exempt trust or custodial accountcreated for the purpose of enabling you to savemoney by paying for qualified medical expensesin connection with a High Deductible Health Plan(HDHP) with before-tax dollars. An HSA helps youset aside money for current and future qualifiedhealth care expenses that aren’t covered by yourmedical plan.An HSA is an individually owned account and is“portable.” This means that the funds are availablefrom year to year and belong to the account holder.This is true even if you change employers or leavethe workforce. There is no “use it or lose it,” so theHSA funds stay with you rather than reverting backto your former employer like a Flexible SpendingAccount (FSA) and most Health ReimbursementAccounts (HRAs). YSA HSAs are custodial accountsconsisting of all funds you and your employercontribute to the HSA, including all eligibleinvestments you make and all earnings onthe funds.Q2: What is an HSA-qualified High-DeductibleHealth Plan (HDHP)?An HSA-qualified HDHP is a health plan thatmeets the requirements as specified and publishedannually by the U.S. Treasury Department.1. The plan must have a minimum annualdeductible. The IRS specifies a minimumdeductible if you have self-only coverage orfamily coverage (more than one covered underthe HDHP). All medical and prescription expensesmust be subject to the annual deductible, withthe exception of preventive care, which may becovered at 100 percent with no deductible.2. Your annual out-of-pocket expenses—such asdeductibles, copayments, and other expenses—may not exceed the IRS specified out-of-pocketmaximums. The out-of-pocket limit does notinclude premiums or amounts incurred fornoncovered benefits (such as amounts in excessof usual, customary, and reasonable amounts,and financial penalties).Q3: What are the advantages of an HSA?One of the biggest benefits is the tax savings.Employer advantages:1. Your employer does not have to pay payroll taxeson your HSA contributions, typically 7.65 percentof the amounts paid plus state unemploymenttaxes (where applicable).2. Your employer’s HSA contributions aretax-deductible by your employer as an employeebenefit, meaning your employer receives a businessdeduction as a normal business expense.Advantages for you:1. Triple tax advantage:a) Contributions that both you and youremployer make to the HSA can be tax-freefor you.b) Interest and investment earnings on yourHSA balance are not taxed.c) Withdrawals used to pay for qualifiedmedical expenses are not taxed.2. The HSA allows you to save for current and futuremedical expenses, meaning the funds are held inthe account year over year and are available whenneeded for current qualified medical expenses orfuture expenses.Health Savings Account Frequently Asked Question Resource Library5

3. The HDHP premiums are usually lower, andsavings can be used to fund the HSA.Investments you make through your HSA are notFDIC-insured. Securities through your self-directedHSA brokerage account are offered through UMBFinancial Services, Inc., member FINRA (,SIPC ( UMB Financial Services, Inc. isa subsidiary of UMB Bank, n.a. UMB Bank, a wholly owned subsidiary of UMB FinancialCorporation. UMB Financial Services, Inc. is nota bank and is separate from UMB Bank, n.a. andother banks.1Note: Neither UMB Bank, n.a. nor its parent,subsidiaries, or affiliates are engaged in renderingtax or legal advice. All mention of taxes is madein reference to federal tax law. States can chooseto follow the federal tax-treatment guidelines forHSAs or establish their own; some states tax HSAcontributions. Please check with each state’s tax lawsto determine the tax treatment of HSA contributionsor consult your tax advisor. Additional federal andstate forms may be required.Investments in securities through the Self-DirectedBrokerage Account are: Not FDIC-Insured May Lose Value No Bank GuaranteeQ4: How do HSAs work?If you have an HSA and are eligible to contributeto it, you choose how much you would like tocontribute each year, up to the annual maximumallowed by the IRS. Contributions can be madedirectly to YSA or through your employer by electingpayroll deductions. Some employers also fund theiremployees’ HSAs. You choose to pay for currenteligible medical expenses with your HSA, or pay forcurrent expenses out of pocket and save your HSA topay for future medical expenses. When to usethe HSA is entirely up to you.Q5: Is money “safe” in the YSA HSA?The money in a YSA HSA Deposit Account isFDIC-insured.* Once an individual account holderhas 1,000 saved in the HSA, known as the“peg balance,” they have the opportunity to makeadditional investments that carry with them variouslevels of risk and reward, similar to investing in aretirement savings plan.1*Funds held in the HSA Deposit Account areFDIC-insured to the maximum amount permittedby law.Q6: Are assets in an HSA protected frombankruptcy (any type), similar tohow assets in a 401(k) or pension planare protected?Each state establishes their own regulations forbankruptcy, and unless there is a federal exemption,the assets are subject to the laws governing thestate where the account holder resides and filesfor bankruptcy protection. There is no federalprotection or exemption for HSA assets.Q7:Does my HSA receive interest?HSAs can receive interest. The current annualpercentage rates of interest can be viewed onlinein your account.Interest is credited to the Deposit Account at theend of each month and is compounded monthly.YSA uses the daily balance method to calculateinterest. This method applies a daily periodic rateto the balance in the Deposit Account each day.Interest begins to accrue no later than the businessday YSA receives credit for the deposit.Health Savings Account Frequently Asked Question Resource Library6

Q8: Why should I consider enrolling in theHDHP with an HSA?If one or more of the following are true, you maywant to consider making a change to an HDHPwith an HSA:Section 2:HSA EligibilityQ10: Who is eligible for an HSA? You are paying for insurance you arenot using.An “eligible individual” may establish an HSA.To be an eligible individual, you must be, withrespect to any month: You want an option to save for current andfuture medical expenses. Covered under an HDHP as of the first day ofthe month; You want to save on monthly premiums. Not also covered by any other health plan thatis not an HDHP (with certain exceptions forcertain types of permitted coverage(s), asdiscussed more fully below); You anticipate major health expenses thatwould reach the out-of-pocket maximumassociated with the HDHP.Q9: Does an HSA have to have money in itbefore it can be used to pay a provider?The HSA is a personal bank account in the accountholder’s name. As such, just like a checking account,the funds must be in the account before it isavailable to be used to pay for any expense. Not enrolled in Medicare benefits; and Not claimed as a dependent on anotherperson’s tax return.Q11: Can I be covered by another health planand still be eligible for an HSA?Except as provided below related to permittedcoverage(s), you are ineligible to make or receiveHSA contributions if you are covered under anotherhealth plan (even as a spouse or dependent) thatis not an HSA-qualified HDHP.Q12: Can I open an HSA and also enroll in ahealth care Flexible Spending Account(FSA) with my employer?You cannot enroll in both an HSA and a healthcare FSA. If you are married, you may not makecontributions to an HSA while covered by yourspouse’s FSA. You can only have a “limitedpurpose” FSA, if one is offered. Eligible expenseswith a limited purpose FSA include mostunreimbursed dental, vision, and/or hearing careexpenses (including expenses for dependents), andpossibly out-of-pocket medical expenses incurredafter the HDHP statutory minimum deductible hasbeen met.Health Savings Account Frequently Asked Question Resource Library7

Q13: What is a Limited Purpose FlexibleSpending Account (LPFSA)?If offered, the most common LPFSA allows you toset money aside on a before-tax basis (via payrolldeduction) to pay for out-of-pocket dental andvision expenses. You could use your HSA to pay fordental and vision expenses, but by fully funding theHSA and funding the LPFSA to pay for this year’sdental and vision expenses, you will maximize yourtax savings while preserving the HSA balance forthe future.Q14: How is an HSA different from an FSA?The main difference between an FSA and an HSA isthat the FSA is a spending account and the HSA isa savings account. The IRS makes that distinctionbecause you are expected to spend the money youhave set aside in your FSA within the plan year (plusan optional two-and-a-half-month grace periodor 500 carryover if offered) or forfeit any fundsnot spent. By contrast, the HSA rules allow you tosave your money until you need it, even if that isn’tuntil many years later. Unused or saved HSA fundsdo not go away at the end of the year but remainavailable to you year over year.Q15: What other types of health coverage(permitted coverage) can I maintainwithout losing eligibility for an HSA?You remain eligible for an HSA if, in addition to anHDHP, you have any one or more of the followingpermitted coverage(s): Insurance where substantially all of the coveragerelates to liabilities from workers’ compensationlaws, torts, or ownership or use of property(such as automobile insurance). Insurance for a specified disease or illness,such as a cancer policy. Insurance that pays a fixed amount per day(or other period) of hospitalization. Coverage (whether through insurance orotherwise) for accidents, disability, dental,vision, or long-term care. Coverage under an Employee AssistanceProgram (EAP). A discount card for health care services orproducts at managed care market rates.Q16: Can I have a joint HSA with my husbandor wife?The IRS specifies that HSAs must be individualaccounts. Therefore, spouses cannot have a jointHSA. Each spouse who is an eligible individualwho wants an HSA must open a separate HSA.However, funds from either spouse’s HSA can beused to pay for the expenses of the other spouseif you both meet the eligibility guidelines. Thecombined annual contributions for both you andyour spouse’s HSAs cannot exceed the annualfamily maximum. If either or both of you are morethan age 55 but not yet enrolled in Medicare,you can each contribute an additional 1,000 toyour HSA. This “catch-up” contribution must becontributed to the HSA of the individual who is55 or older. See Section 4: HSA Contributionsfor more details.Health Savings Account Frequently Asked Question Resource Library8

Q17: I f an HDHP medical plan covers domesticpartners, are domestic partners eligibleto open an HSA?The same eligibility rules related to opening anHSA apply to a domestic partner as anyone else.If your domestic partner meets the HSA eligibilityrequirements, he or she would be eligible to openan HSA. Furthermore, since domestic partnersare not considered spouses by the IRS, domesticpartners are considered to be two unattachedindividuals, and you would each have your ownHSA contribution limit if you both have HSAs.However, domestic partners can’t use their HSAto pay for their partner’s health expenses, unlessthey claim their partner as a federal tax dependent.You should seek tax guidance from a tax attorneyon matters related to tax dependency of domesticpartners. Individuals who can be claimed asdependents on another person’s tax return arenot eligible to open their own HSA.Note: The IRS has ruled that same-sex couplesthat are legally married will be treated as married forall federal tax purposes. For federal tax purposes, theterms “spouse,” “husband and wife,” “husband,”and “wife” include an individual married to a personof the same sex if the individuals are lawfully marriedunder state law, but that such terms do not includeindividuals who have entered into a registereddomestic partnership, civil union, or similar formalrelationship recognized under state law that is notdenominated as a marriage under that state law.Q18: What happens to the money in an HSA ifHDHP coverage is no longer maintained?The funds belong to you for life. Once funds aredeposited into the HSA, the account can be usedto pay for qualified medical expenses tax-free,even if you no longer have HDHP coverage orare no longer eligible for some other reason. Thefunds remain in the account automatically eachyear and indefinitely until used. There is no timelimit on using the funds. Once HDHP coverageis discontinued and/or another type of insurancepolicy is maintained, the IRS no longer allowsnew contributions, but the funds may still beused tax-free for qualified medical expenses orfor nonqualified medical expenses while subjectto taxes and possible penalties.Q19: A s an expatriate employee, can I contributeto an HSA?If you have an HSA, and then take an overseasassignment, you can continue to contribute aslong as you continue to be enrolled in an HDHP.Q20: As an expatriate employee, can I open anew HSA?Opening the account depends upon having aU.S. address. If you have a U.S. address, and youare participating in an HDHP, you should be ableto participate.Q21: Can a nonresident alien open an HSA?No, an HSA account holder must be a U.S.citizen living in the U.S. or a resident alien.Health Savings Account Frequently Asked Question Resource Library9

Section 3:Establishing an HSAQ22: How is an HSA established or opened?An HSA is established by agreeing to the UMBdisclosures (written HSA custodial agreement,Terms and Conditions, and Privacy Statement)during medical plan enrollment and by fundingthe account. The IRS allows you to establish an HSAon the first of the month or any day after all theeligibility requirements are met.Q23: Can I title my HSA in the name of a trust?The IRS only accepts an HSA as an individualaccount. Therefore, you cannot title an HSAaccount in a trust that involves joint ownership.However, you may designate a beneficiary as thename of the trust. To do so, you must completeand sign a Beneficiary Designation Form.Q24: Does YSA provide statements?You will receive a quarterly paper statement inthe mail and will also be able to view yourstatements online. If preferred, you may choose togo paperless. YSA will send an email notifying youwhen your statement is available online to view,print, or save. The past 18 months of statementsare always available. As a result of your selection togo paperless, you will no longer receive a paperstatement in the mail as of the first statementcycle after you enroll.Q25: Does the HSA have a debit card toaccess funds?You will receive an HSA debit card in the mail afteryou enroll. The HSA debit card can be used topay for qualified medical expenses for you andyour dependents. When using your debit card ata merchant location (other than an ATM), youcan enter “credit” into the merchant’s keypadat checkout and sign for your purchase, or enter“debit” and enter the 4-digit PIN you chose whenyou activated your card. Funds will be automaticallydeducted from your HSA.Q26: What if the card doesn’t work at thepoint of sale or the cashier says thetransaction has been declined?It may be necessary to use another form ofpayment. The declined transaction may be dueto the following reasons: The purchase was not considered anHSA-qualified medical expense. The HSA balance was too low to coverthe transaction.Q27: Can I request a duplicate card for otherfamily members?Yes, an HSA is an individually owned account inyour name. You may authorize another person,such as a spouse, to withdraw funds from theHSA Deposit Account by any means available toyou. You can request an additional card for yourdependent on the YSA website.Q28: What should I do if the card is lostor stolen?You must contact UMB Customer Serviceimmediately at 866.520.4HSA (4472).Health Savings Account Frequently Asked Question Resource Library10

Section 4:HSA ContributionsQ29: How do I contribute to my HSA?The simplest way to contribute to the HSA isthrough before-tax payroll contributions, but youmay also write a check or transfer money from yourbank account to make a lump-sum contributionto your HSA. If the money comes from your bankaccount instead of through payroll contributions,you may deduct the amount contributed on yourfederal taxes using IRS Form 8889 since thosecontributions would be made with after-tax money.Q30: Who may contribute to an HSA?An HSA may receive contributions from you or anyother person, including an employer or a familymember, on your behalf. Contributions, other thanemployer contributions or an employee’s before-taxpayroll contributions, are deductible on your federaltax return whether or not you itemize deductionsor whether you or anyone else other than youremployer makes the contribution. Contributionsfrom all sources are aggregated for the purpose ofapplying the maximum annual contribution limit.Q31: In what form may I make contributionsto an HSA?You must make contributions to an HSA incash. As custodian of the HSA, UMB will acceptcontributions by check, direct deposit from anemployer, or online transfer from a personal bankaccount. UMB will also accept rollovers or transfersof assets from an Archer Medical Savings Account(MSA), an existing HSA, or an IRA, in accordancewith the requirements of the Internal Revenue Code.All contributions to your HSA will initially be madeto an interest-bearing HSA Deposit Accountat YSA.Q32: What is the dollar amount of HSAcontributions allowed each year?The maximum amount that may be contributedto an HSA for any year is a certain amountestablished by the IRS for each year. The limitsare dependent on whether you have singlecoverage or family coverage in your qualifiedHDHP. Self-only HDHP coverage (individual limit)is an HDHP covering only an eligible individual.Family HDHP coverage (family limit) is an HDHPcovering an eligible individual and at least oneother individual (whether or not that individualis an eligible individual). The same annualcontribution limit applies regardless of whetherthe contributions are made by an employee, anemployer, or both. You can visit the Your SpendingAccount website for plan year limits.If enrolled in an HDHP January 1 throughDecember 1 of the current tax year, you areallowed to make the full annual maximum HSAcontribution for the year. If enrolled in an HDHPfor a partial year not including December 1, youare allowed to contribute the prorated amountbased on the number of months you were eligible.If enrolled in an HDHP for a partial year includingDecember 1, you are allowed to contribute the fullannual maximum for the year. However, in this caseif you do not remain eligible for 12 months afterthe end of the calendar year in which you enrolledin an HDHP, you will be subject to income tax anda 10 percent excise tax on HSA contributions formonths not covered by an HDHP. Refer to theIRS for up-to-date penalty information.The total contribution for the year can be madein one or more payments at any time up to thetax-filing deadline (without extensions). However,if you wish to have a contribution made betweenJanuary 1 and April 15 treated as a contribution forthe preceding taxable year, you can use the UMBonline contribution tool or contribution couponand check the box “prior year contribution.”Health Savings Account Frequently Asked Question Resource Library11

Q33: Can a contribution made in Decemberbe applied to the following tax year?No. Contributions can never be applied to afuture tax year.Q34: If I already have an HSA set up througha former employer, can the new employercontribute to that HSA?It may be necessary to open a new YSA HSAwith your new employer in order to receiveemployer funding and to make before-tax payrollcontributions. You may also choose to consolidateaccounts by transferring the balance from the oldHSA into your YSA HSA. Once the YSA HSA is open,you then can decide how you would like to transferthe funds. You have two options:Q36: Can my employer take its contributionsmade in error out of an HSA?The IRS states that HSAs are nonforfeitable.Therefore, as the custodian, UMB requires writtenaccount holder authorization to remove funds/contributions from your HSA. There are only twoexceptions when YSA can return money directlyto the employer:1. The account holder was never eligible foran HSA.2. The funds put your HSA into an excesscontribution scenario (more than the familymaximum, plus catch-up). A direct transfer of the balance from anothertrustee to a YSA HSA; or A distribution of funds to you. You may thenroll over all or part of the HSA balance intoa YSA HSA.Q35: If my employer gives the full employercontribution early in the plan year, whathappens if I leave/am terminated?Once an employer makes a contribution to yourHSA, it is legally owned by you, and you can dowhatever you want with the funds. Hence, if youleave, you keep the funds. In an effort to minimizethis “risk,” some employers choose to spread theircontributions out throughout the year. Since HSAsare not subject to COBRA, once you terminate,your employer is not responsible for any moreHSA funding.Health Savings Account Frequently Asked Question Resource Library12

Q37: If an HDHP is on a plan year (starts on adate other than January 1), how does thatwork with HSA contribution maximums?The IRS regulates HSA plans and publishes itsguidance in Publication 969. The IRS allows twomethods for figuring out your personal maximumcontribution. You may use the method that resultsin the higher contribution.1. Full Contribution Rule (also known asthe Last Month Rule)Anyone eligible on or before December 1 cancontribute the entire

Q27: Can I request a duplicate card for other family members? Q28: What should I do if the card is lost or stolen? Section 4: HSA Contributions 11 Q29: How do I contribute to my HSA? Q30: Who may contribute to an HSA? Q31: In what form may I make contributions to an HSA? Q32: What is

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