MANAGING YOUR HSA
Synopsis by Dave Ballard Insurance
Who has control over the money invested in a Health
Savings Account?
The account holder controls all decisions over how the money is invested. You
can also choose not to invest your funds.
Can the funds in an HSA be invested?
Yes, you can invest the funds in your
HSA. The same types of investments permitted for IRAs are allowed
for HSAs, including stocks, bonds, mutual funds, and certificates
of deposit.
Will my bank notify me if I’ve exceeded my
allowable contribution amount?
No, it is your sole responsibility to
keep track of the amounts deposited and spent from your account,
just like a normal savings or checking account.
Can I borrow against the money in my HSA?
No. You may not borrow against it or
pledge the funds in it. For more information on prohibited activities,
see Section 4975 of the Internal Revenue Code.
Can I roll the money in a Health Savings Account
over into an IRA?
You cannot roll the HSA funds over into
an IRA. They will stay in the HSA or be rolled into another HSA.
Can I roll over an IRA, 401(k) or other retirement
plan into an HSA?
You cannot directly roll funds in an
IRA, 401(k) or other retirement plan into an HSA. You can withdraw
funds from one of these accounts, pay applicable taxes (and penalties)
on the amount you withdraw, and then use the remaining funds to
make a contribution to your HSA. However, the amount you contribute
to your HSA is still limited by the annual contribution limits.
Can I roll funds in my Archer MSA into my HSA?
Yes, if you do so within 60 days of withdrawing
the funds from the Archer MSA.
What happens to the money in my HSA when I die?
What happens depends on how the HSA is
designed. If your spouse is designated as the beneficiary
by you, your spouse becomes the owner of the HSA when you die.
If you provide that it goes to your estate or other entity, the
value of the HSA at death is income to the estate or other entity.
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