Saturday, March 11, 2017

What If You Use Your Health Savings Debit Card For Take-Out?

GOP is going to have to tighten this up and make the HSAs debit-able only by accredited providers or insurers not take out shops or other non healthcare related businesses.
Whoops! I printed out my year-end summary of distributions from my health savings account recently and saw a debit to a local take-out shop, Garelick & Herbs, for $12.62, obviously not an eligible medical expense. You’d figure you could simply return funds to the account if you make the mistake of pulling the wrong card out of your wallet, but nothing’s simple when it comes to the tax code, is it? 
I checked the frequently asked questions from my HSA administrator, OptumHealthBank: “How do I report withdrawals that are used for non-eligible expenses? You must report distributions for ineligible expenses. Consult your tax advisor for specifics.” Hmmm.

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