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WiseguyDS
New Member

Current health ins is not-HSA compatible. I do have an HSA. 8 months later, a medical provider gave me a large $650 refund already reimbursed. Can I deposit it back in?

HSA established years ago. $3000 reimbursed to me earlier this year. The refund was received this month (December) and in same tax year as the reimbursements. Is it ok to re-deposit the $650 back in to my HSA?
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2 Replies

Current health ins is not-HSA compatible. I do have an HSA. 8 months later, a medical provider gave me a large $650 refund already reimbursed. Can I deposit it back in?

Yes if the HSA will allow the reimbursement to the HSA account ... contact the HSA account manager. 

Current health ins is not-HSA compatible. I do have an HSA. 8 months later, a medical provider gave me a large $650 refund already reimbursed. Can I deposit it back in?

Possibly.  You have to request a "return of mistaken distribution."  (In other words, you have to ask the bank to take back the money because you did not actually need it for a medical expense.)  This will probably require a special form that you have to fax or email to the HSA bank.

 

Do not make a regular deposit, that will be recorded as a contribution, and if you are ineligible, it will be subject to the penalty.

 

If the bank will not take the money back, you have to keep it.  Because it represents a refund of tax-free money, it is treated as taxable income.  There is a place under miscellaneous income to report a reimbursement of a previous deduction. 

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