HSA - Health Savings Accounts?

[LimpDisc]

I had appointments with 2 lawyers and each had a different response to bi-weekly paycheck HSA deductions.

Do you get the expense deduction for the average amount put into your HSA account each month or the actual amount used each month? My first lawyer led me to believe that it was the amount put into the account, but my second lawyer seemed to think differently.

Both the wife & I put in $1300 per year and the company adds an additional $1200. The $2500 isn't that much when you consider the deductable for each of us runs $3000 per year. A couple of bad years and the HSA is wiped out. Were trying to build a little nest egg for that very reason. Our HSA account balance carries over from year to year.

Do you think the combined $216 average monthly deduction will be questioned if we do not use that full amount each year?

[doingpoorly]

I have a $470 monthly contribution to my hsa and had a $2900 balance when I filed. Neither was questioned. Granted, I have a $10,000 deductible but they never asked about that part. Lawyer didn't think contribution or balance were going to be an issue.

[ska]

We contribute $3,000 per year and also counted ALL of our medical expenses. Nothing was questioned. My attorney told me that many trustees do not question the HSA versus medical expenses. I counted the HSA as a deduction ($250 per month) and a little over the maximum (an additional $20) for medical expenses for my family size, and I didn't deduct the reimbursement from my HSA. Now, this was per my attorney. She had previously worked with trustees and understands their process. Each court or trustee may be different, but I was fortunate enough to not have it questioned.

LimpDisc, you are very fortunate to have your company contribute a good portion to your HSA. My husband's company only contributes $50 per year. On that note, I would only count the amount that is taken out of the paycheck and not include the amount from the company. That's just my advice. But, you may want to review every medical expense you incur...bandages, Tylenol, cough syrup, sunscreen, etc...it all counts towards your medical expenses.

[LimpDisc]

We were only planning to deduct the amount ($217) that we contribute. We are puzzled why the second lawyer said you can only deduct the amount you use from those funds. It's not like you can get the money back without tax penalties.

[Amy26]

I only had a little bit in my HSA but it was never questioned or even asked about. I just provided a bank statement from it.