HSA Accounts

[dirtboy]

My employer in missouri has an option to use an HSA account. The HSA account does not have any type of debit card or checks. If i open an HSA account at my local credit union is my employer required to put the money in the new account instead of the one they offer. If not and i open one anyway if they will put the funds in the new account will it be pre tax or not?

 

[PayrollHRGuy]

My employer in missouri has an option to use an HSA account. The HSA account does not have any type of debit card or checks. If i open an HSA account at my local credit union is my employer required to put the money in the new account instead of the one they offer. If not and i open one anyway if they will put the funds in the new account will it be pre tax or not?

I can answer half of that question. No your employer doesn't have to deposit into the CU HSA.

 

[LdiJ]

My employer in missouri has an option to use an HSA account. The HSA account does not have any type of debit card or checks. If i open an HSA account at my local credit union is my employer required to put the money in the new account instead of the one they offer. If not and i open one anyway if they will put the funds in the new account will it be pre tax or not?

If the HSA does not have debit cards, what method is used for medical expenses to be made from the HSA?

 

[cbg]

Although my employer offers a debit card with their HSA, not all providers of HSA-related services accept debit cards and in some cases where they do, the employee doesn't have it on them at the time.. In those instances, the employer completes a form, attaches receipts, and submits it all to our third-party HSA administrator.

 

[LdiJ]

Although my employer offers a debit card with their HSA, not all providers of HSA-related services accept debit cards and in some cases where they do, the employee doesn't have it on them at the time.. In those instances, the employer completes a form, attaches receipts, and submits it all to our third-party HSA administrator.

Ok, a bit old fashioned but it makes sense.

 

[cbg]

We're Harvard, darlin', the most conservative and most liberal of all institutions at the same time. Besides, we can't MAKE the providers accept a debit card; we have to have some alternate means.

 

[FlyingRon]

Veritas!

 

[FlyingRon]

I can answer half of that question. No your employer doesn't have to deposit into the CU HSA.

The employer doesn't, but the employee can (if he's otherwise covered by only a HDHP). While the employer would have collected withholding on the money, the money at the end of the year will still be "pretax" (excluded from contributing to his tax liability).

Most employer HSA plans suck badly in my experience (even if they have debit cards). They're usually incestuous with the HDHP provider itself. The major reason most people use them is the convenience of not having to manage their own.