It's relatively simple to report. HSA Bank will send a 1099-SA for the $1000 distribution, and you can mark it was a qualified distribution on Form 8889 to avoid tax/penalty. Tax software should assist in doing this.
We both had the "mandatory circa $1,000 cash held at HSA . We each requested an electronic distribution to our Bank accounts from HSA Bank of $1,000 which arrived the following day at our Banks. We have medical bills over the years that can be used i think to offset any tax on the distribution .
Alternatively, you have 60 days from receipt to do a 60-day rollover into the Fidelity HSA, which you can do by calling them if you have the funds in another Fidelity account, or you can probably mail in a check with the right form. This assumes you haven't done another HSA 60-day rollover in the prior year. This would also be reported on the Form 8889 for the year of distribution.
Statistics: Posted by Lyrrad — Sat Sep 14, 2024 10:35 am