topic Reversal of FSA Medical Payment in Deductions & credits

Reversal of FSA Medical Payment

IN2FL — Tue, 08 Oct 2019 16:46:55 GMT

I understand that a "correction" of a medical bill paid from a Health Savings Account in error can be reversed by a deposit back into the HSA. My question is " Can a legitimate medical bill paid from a HSA account be reversed by a reimbursement to the HSA within the same tax year"? I would like to now deduct a medical bill I previously paid directly from my HSA. Can I properly reverse this payment?

Re: Reversal of FSA Medical Payment

Anonymous — Tue, 08 Oct 2019 17:07:02 GMT

what you describe does not appear to be what would be considered a mistaken distribution. I think, in your situation, that it would be considered a contribution and if you contribute over the max there are penalties. I would suggest you talk to the trustee because it will be the one issuing the tax forms.

Re: Reversal of FSA Medical Payment

dmertz — Tue, 08 Oct 2019 18:47:54 GMT

No, this does not qualify as a mistaken distribution, so no return of mistaken distribution can be done with regard to this distribution. Under these circumstances the only way to have gotten the money back into the HSA would have been by rollover within 60 days following the date of the distribution, and that 60-day deadline has long since passed.