Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
HSA withdrawal
Old 10-28-2019, 07:42 AM   #1
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Chicago
Posts: 1,129
HSA withdrawal

I have a Fidelity HSA. I haven't called customer service yet but was wondering does anybody have an HSA from there and how do you make a withdrawal to make a medical payment? Thanks
__________________

ripper1 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 10-28-2019, 07:50 AM   #2
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Chicago
Posts: 1,129
Can I just transfer the amount needed for medical bill to my bank account and then write check to hospital? I just saw that I will receive a 1099-SA form for the amount withdrawn.
__________________

ripper1 is offline   Reply With Quote
Old 10-28-2019, 07:53 AM   #3
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 2,947
I don't have an HSA with Fidelity but I w/d automatically into my checking account. I always pay medical bills myself w/ CC. Then, reimburse myself to my checking account. That way, I get the points on the CC. I can also make sure I'm paying the right doctor/hospital/lab. I'd rather correct any mistakes with CC than messing with HSA. I always double check, date, amount, and make notes in the HSA account.
__________________
"If you want to go fast, go alone. If you want to go far, go together.
Rianne is offline   Reply With Quote
Old 10-28-2019, 07:56 AM   #4
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
Quote:
Originally Posted by ripper1 View Post
Can I just transfer the amount needed for medical bill to my bank account and then write check to hospital? I just saw that I will receive a 1099-SA form for the amount withdrawn.

Yes.

Based on other withdrawals I have made from an HSA, you keep the documentation. If you ever get audited, you need to prove to the IRS that it was for the correct purpose. It is on the honor system.

An HSA is not an Healthcare Reimbursement plan.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 10-28-2019, 07:59 AM   #5
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 5,325
Quote:
Originally Posted by ripper1 View Post
Can I just transfer the amount needed for medical bill to my bank account and then write check to hospital? I just saw that I will receive a 1099-SA form for the amount withdrawn.
This is how I always manage it. I make the payments out of pocket (use a credit card for cash back/points where you can), then reimburse myself by requesting it and having my checking account linked. I haven't done this with Fidelity yet, but assume they all work kind of the same way.
Aerides is offline   Reply With Quote
Old 10-28-2019, 08:26 AM   #6
Recycles dryer sheets
blueskyk's Avatar
 
Join Date: Mar 2010
Location: Southern UT
Posts: 238
I have an HSA with Bank of America and use the debit card for the account to pay medical expenses. If I get a discount for cash, I write a check and then transfer that amount form HSA to linked personal checking account.
__________________
"If, then, I were asked for the most important advice I could give, that which I considered to the most useful to the men of our century, I should simply say: in the name of God, stop a moment, cease your work, look around you." Leo Tolstoy
blueskyk is offline   Reply With Quote
Old 10-28-2019, 08:46 AM   #7
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Posts: 2,428
Quote:
Originally Posted by Aerides View Post
This is how I always manage it. I make the payments out of pocket (use a credit card for cash back/points where you can), then reimburse myself by requesting it and having my checking account linked. I haven't done this with Fidelity yet, but assume they all work kind of the same way.
Aerides, I'm not indicating your method is wrong, but just offering the way I handle it as it is a little different. I just pay it out of my taxable assets an leave my hsa invested. I keep a record of medical expenses after the first hsa was started and what expenses were used for tax deduction. So far I have not used my hsa to pay for medical expenses. My plan is to use the has to help with medical/LTC expenses later in life. However I can claim past expenses that have not been used for deductions, were after the first hsa and were not already used for medical expenses. This is kind of like a healthcare roth
bingybear is offline   Reply With Quote
Old 10-28-2019, 09:11 AM   #8
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 5,325
Yes that's fine too. You can technically leave your HSA funds where they are and reimburse yourself years later - as long as you keep the records - the eligibility of using the funds doesn't have an expiry date.

I have two HSA accounts - one from working and one from retirement that I use each year to help manage my magi.

My old HSA isn't huge, and it has a small monthly fee, so I'm interested in drawing that down as I build up my post-retirement new one with Fido.
Aerides is offline   Reply With Quote
Old 10-28-2019, 09:19 AM   #9
Thinks s/he gets paid by the post
 
Join Date: Jul 2015
Location: Beaverton
Posts: 1,373
I requested a Fidelity HSA credit card. Easy as can be.
__________________
Jump in, the water's warm.
Bir48die is offline   Reply With Quote
Old 10-28-2019, 09:22 AM   #10
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 46,690
Out of curiosity, anyone have any first hand knowledge of anyone getting in hot water with the IRS over HSA withdrawals? I've reimbursed myself annually over the past decade for our LTC insurance premiums so never worried about being able to clearly show the HSA withdrawal was for eligible expenses. But I've always wondered if anyone, maybe someone who suddenly withdrew a large sum, ever got audited as a result?
__________________
Numbers is hard

You may not know it but I'm quite famous

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 10-28-2019, 09:56 AM   #11
Recycles dryer sheets
BrianB's Avatar
 
Join Date: Jul 2011
Location: Minneapolis
Posts: 228
Fidelity will send you a checkbook for your HSA at no cost. I write a check to myself for whatever expenses we want to have reimbursed and photo-deposit it to our Cash Management Account. I keep the check with copies of the payment receipts in our current year tax file. Old fashioned I know, but I still like having a paper trail.

In the past four years we have never had to provide proof, but the receipts and matching check should be sufficient if we're asked for it.

Brian
BrianB is online now   Reply With Quote
Old 10-28-2019, 10:07 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 25,453
They let you request a debit card - that’s another option.

I’ll probably request a checkbook. But most of my expenses will be paid via bill pay from my HSA account. In particular Medicare premiums auto paid monthly. That also has an advantage of record keeping within the one account showing medical providers.
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 10-28-2019, 12:50 PM   #13
Thinks s/he gets paid by the post
 
Join Date: Jul 2015
Location: Beaverton
Posts: 1,373
Quote:
Originally Posted by REWahoo View Post
Out of curiosity, anyone have any first hand knowledge of anyone getting in hot water with the IRS over HSA withdrawals? I've reimbursed myself annually over the past decade for our LTC insurance premiums so never worried about being able to clearly show the HSA withdrawal was for eligible expenses. But I've always wondered if anyone, maybe someone who suddenly withdrew a large sum, ever got audited as a result?


In regards to withdrawals, youíre pretty much on the honor system if youíre not using a debit card. Contributions are reported via form 8889. Iím not sure what would trigger an audit but itís my guess where your spending is significantly higher than deposits and you havenít reached 65. As long as you have backup your golden.
__________________
Jump in, the water's warm.
Bir48die is offline   Reply With Quote
Old 10-28-2019, 12:59 PM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RobbieB's Avatar
 
Join Date: Mar 2016
Location: Central CA
Posts: 5,214
I'm with HSA bank and use the card. When I check the activity the payee (doctor or dentist or pharmacy) is right there. I don't keep records.
__________________
Retired at 59 in 2014. Should have done it sooner but I worried too much.
RobbieB is online now   Reply With Quote
Old 10-28-2019, 01:40 PM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 12,300
Quote:
Originally Posted by REWahoo View Post
Out of curiosity, anyone have any first hand knowledge of anyone getting in hot water with the IRS over HSA withdrawals? I've reimbursed myself annually over the past decade for our LTC insurance premiums so never worried about being able to clearly show the HSA withdrawal was for eligible expenses. But I've always wondered if anyone, maybe someone who suddenly withdrew a large sum, ever got audited as a result?
I've never heard of anyone being audited. My previous employer sponsored HSA provider nanny-ed me to death for proof on every withdrawal. Since I left them, I've had three different HSA providers and they leave it up to me to document what the money was spent on.
travelover is offline   Reply With Quote
Old 10-28-2019, 04:27 PM   #16
Recycles dryer sheets
 
Join Date: Apr 2015
Location: Austin
Posts: 96
Quote:
Originally Posted by travelover View Post
I've never heard of anyone being audited..
I would guess it's a matter if the amounts taken out raise the flags. I have accumulated $40,000 in medical expenses over many years that I can draw from my HSA at any time. If I withdraw all of that all in one year, I imagine that I'll need to be ready for the IRS to ask questions.
Smitty700 is offline   Reply With Quote
Old 10-28-2019, 04:33 PM   #17
Thinks s/he gets paid by the post
Senator's Avatar
 
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
Quote:
Originally Posted by Smitty700 View Post
I would guess it's a matter if the amounts taken out raise the flags. I have accumulated $40,000 in medical expenses over many years that I can draw from my HSA at any time. If I withdraw all of that all in one year, I imagine that I'll need to be ready for the IRS to ask questions.
Maybe. Abut 30 years ago I reported my employer to the IRS for failing to pay SS taxes. They asked me if it was over $25K in taxes. Since it was not, he said they were not too worried about it.

From what I hear, they are even less concerned. They need to justify the hours spent compared to the money taken in.
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
Senator is offline   Reply With Quote
Old 10-28-2019, 10:26 PM   #18
Full time employment: Posting here.
swakyaby's Avatar
 
Join Date: Feb 2011
Location: central California
Posts: 592
Fidelity issued me a HSA debit card upon my request. It seems like the easiest way to take withdrawals from the HSA with minimal record-keeping.
swakyaby is offline   Reply With Quote
Old 10-28-2019, 10:45 PM   #19
Recycles dryer sheets
GoodWishes's Avatar
 
Join Date: Jul 2013
Posts: 140
Quote:
Originally Posted by swakyaby View Post
Fidelity issued me a HSA debit card upon my request. It seems like the easiest way to take withdrawals from the HSA with minimal record-keeping.
+1

Use the Fidelity HSA card for all medical expanses. The card tracks all payees and amounts so minimal record keeping needed. Also if I use HSA card at places like CVS, it is smart enough to only charge allowed expenses on HSA card. Then I need to pay the rest separately. So I don't need to figure out myself what is allowed since HSA can be used on many over the counter things.
GoodWishes is offline   Reply With Quote
Old 10-29-2019, 07:00 AM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 9,290
Quote:
Originally Posted by Smitty700 View Post
I would guess it's a matter if the amounts taken out raise the flags. I have accumulated $40,000 in medical expenses over many years that I can draw from my HSA at any time. If I withdraw all of that all in one year, I imagine that I'll need to be ready for the IRS to ask questions.
I have a little more than that, and have been saving medical receipts. I probably won't take it all in one year, but it's possible. If they do ask questions, I'm ready. I have a spreadsheet and all receipts.
__________________

RunningBum is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Transfer HSA account to my Fidelity HSA account fh2000 FIRE and Money 4 08-12-2019 11:27 AM
What now; HSA with no available HSA Health Plan? kite_rider Health and Early Retirement 4 12-03-2016 06:23 PM
Thinking about the HSA plan but my kid also has a non-HSA plan dvalley FIRE and Money 11 11-11-2015 04:35 PM
Transferring HSA money to a new HSA account Mulligan FIRE and Money 13 06-27-2014 08:26 PM

» Quick Links

 
All times are GMT -6. The time now is 09:19 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.
×