If you have made a funds distribution for non-qualified medical expenses or made an overpayment to a provider, you will need to log in to your online account. This function can’t be done on the mobile app.
Your Health Savings Account (HSA) should only be used for qualified medical expenses.
If you spend HSA funds on a non-qualified medical expense, the money will be included in your gross income for tax purposes and is subject to an additional 20% penalty. Once you reach the age of 65, the penalty no longer applies, but the non-qualified distribution is still subject to income taxes.
If you made a distribution for non-qualified medical expenses or made an overpayment to a provider, log in to the HealthEquity Member Support Portal and fill out and submit the Mistaken HSA Distribution form. The form includes the following:
An agreement that the distribution was a mistake and not done intentionally.
Banking information for HealthEquity to use to reallocate the funds.
You can replace the money in your account by the tax deadline of the following year without penalty or tax.
HealthEquity can help correct mistaken distributions for the current tax year and one year prior, which may include amended tax forms and require additional tax filings if done outside of the current tax year.
Note: HealthEquity does not provide legal, tax or financial advice.