HSA Accounts, are they exempt??

[kpminn]

I am considering filing a CH-7 on my Sub-S corp and will have to file personally also due to personal guarantees on leases and bank loans.

I have an HSA account (Health Savings Account) with a $10000 balance.
The last 2 years I was able to pay all my medical expenses out of pocket and wanted the HSA to fund my medical expenses when I retire. (62 this July).

Should I take the HSA funds out and use them to pay other expenses?
I could contribute more into my 401K and use the funds for living expenses.

I am not going to file until forced to by bank or landlord... Hopefully we will see some economic recovery and commercial construction will come back...

Thanks,

Keith

[aces67]

IDK. When we filed we had $3600 in our HSA and it was exempt. No questions were even asked about it. $3600 is what we typically spend on our family of 4 per Year.

$10K is a lot though so I'm not sure.

[catleg]

I think your problem here is that the HSA is not considered an ERISA plan.
Not clear if it might fall under the IRA exemption, possibly state level.
I would keep looking for info but I would operate on the assumption that it's at risk until you find out otherwise.

[Amy26]

I just saw my lawyer on Friday and I asked him about my HSA account. Mine is quite small like 500 bucks but he said you have to file it a special way ...he said mine wasn't an issue cause it was a small amount but I can't remember exactly what he said about how to report it.