Health Savings Accounts (HSAs) can be complicated, leading to many frequently asked questions (FAQ).
Saginaw Bay Underwriters created this helpful, three-part series of posts entitled “HSA FAQ” to address many of these questions and provide some clear answers, so that you can be better informed when making decisions about benefits for you and your family.
In Part 3, we’ll look at four more of these common questions.
9. What records do I need to keep for my HSA?
You should keep your insurance carrier’s Explanation of Benefits (EOB) statements and receipts for any qualified health care expenses that you paid for with your HSA.
Since an audit is always possible, it makes sense to keep these items for as long as you maintain your HSA account. If you’re able, keeping records electronically makes doing so much easier.
10. If I’m no longer enrolled in an HDHP, can I still use my HSA?
Yes. As explained in Part 1, you aren’t eligible to open or contribute to an HSA if you aren’t covered by a qualifying High Deductible Health Plan (HDHP), but HSA usage is not affected by eligibility.
Even without an HDHP, you can still use your previously saved HSA funds for qualified health care expenses, allow them to build interest or invest them.
11. What if I want to move an HSA?
You’re able to move your HSA between providers in two different ways.
In a trustee-to-trustee transfer, you never take possession of your HSA funds – they move directly from one provider to another. For example, for ease of use, you may decide to transfer your HSA from your previous employer’s provider to a new employer’s provider. You may make as many trustee-to-trustee transfers as you like with your HSA.
In a direct rollover, you withdraw your HSA funds directly and deposit them with a new HSA provider. You only have 60 days to complete this transaction or you’ll be responsible for a 20% income tax. You may make only one HSA direct rollover every 12 months.
12. What happens to my HSA if I pass away?
Your HSA should be thought of as part of the overall estate planning process. If you pass away, there are three things that can happen:
Making the Complex Simple
HSAs are a great option for many, but people still have many frequently asked questions about them.
We hope our “HSA FAQ” series has answered some questions you may have had, so you can make more informed insurance decisions. Please subscribe to our blog to receive more helpful information from us in the future.
Call Saginaw Bay Underwriters at (989) 752-8600 if you’d like to speak with an employee benefits risk advisor more about HSAs.
Saginaw Bay Underwriters has made every attempt to ensure this information has been obtained from reliable sources. Current as of: February 2021