Hi,
I had my HSA card stolen in Oct 2024 and resulted in fraudulent transactions which are now reported on my 2024 1099-SA under Distribution Code 1. The Payer (Health Equity) has since refunded the amount (in Feb 2025) but has not provided any details/ETA on when they can share an updated 1099-SA (quoting the claims dept needs to look into it). How should I proceed in this instance?
Option 1: Do not report this 1099-SA to IRS
Option 2: Report the 1099-SA to IRS and for the question: Did you spend your HSA money on medical expenses only? select the option "Yes, I only used it for medical expenses"
Option 3: Report the 1099-SA to IRS and for the question: Did you spend your HSA money on medical expenses only? select the option "No, I didnt" followed by the option " I didn't spend any of it on medical expenses" and select the option "Amount was rolled over into another HSA or MSA"
Can you please advise what is the right option or if you propose any alternate options. Thank you.
