Disappearing Health Savings Account (HSA)
April 15, 2019 4:51 PM Subscribe
The company with whom I had my HSA apparently cashed it out and gave it to my ex-employer. Was this even legit? What do I do now?
I quit a hideously awful terrible no-good job recently. It was my understanding that I would still have the HSA account from that job.
Looking on the WageWorks site (with whom I had the HSA) I see this: "What happens to my HSA if I leave my job? This is one of the best things about an HSA: it's yours! Your HSA is yours and yours alone. It is yours to keep, even if you resign, are terminated, retire from, or change your job. You keep your HSA and all the money in it, but keep in mind that there may be nominal bank fees if you are no longer enrolled in your HSA through your employer."
Today I tried to log into my HSA account and found that my credentials no longer worked. I called WageWorks, and they said that the money in the HSA was cashed out and given to my employer March 16th (the day after my last day of work). They would give me no other details and told me to address my questions to my benefits department.
I was never given the money in the HSA (which was north of $700) nor notified by my employer that this had been done. I've emailed HR but I'd like to hear some feedback from a neutral party since I do not trust my ex-company or what HR might say about this.
My questions are:
1. Was it legit/legal for them to have done this?
2. What do I do if I don't get the money back from my former employer?
3. If I do get it back, what do I do with it then? Set up some independent HSA account?
4. How can I see the details of the contributions I made to the HSA in the 2018 tax year? I have a tax form that lists the deductions from the account, but no longer any way of confirming how much I contributed during 2018 (as separate from what my empoyer contributed, which I see on my W2). I did not receive paper statements and don't have access to online records anymore.
Thanks.
I quit a hideously awful terrible no-good job recently. It was my understanding that I would still have the HSA account from that job.
Looking on the WageWorks site (with whom I had the HSA) I see this: "What happens to my HSA if I leave my job? This is one of the best things about an HSA: it's yours! Your HSA is yours and yours alone. It is yours to keep, even if you resign, are terminated, retire from, or change your job. You keep your HSA and all the money in it, but keep in mind that there may be nominal bank fees if you are no longer enrolled in your HSA through your employer."
Today I tried to log into my HSA account and found that my credentials no longer worked. I called WageWorks, and they said that the money in the HSA was cashed out and given to my employer March 16th (the day after my last day of work). They would give me no other details and told me to address my questions to my benefits department.
I was never given the money in the HSA (which was north of $700) nor notified by my employer that this had been done. I've emailed HR but I'd like to hear some feedback from a neutral party since I do not trust my ex-company or what HR might say about this.
My questions are:
1. Was it legit/legal for them to have done this?
2. What do I do if I don't get the money back from my former employer?
3. If I do get it back, what do I do with it then? Set up some independent HSA account?
4. How can I see the details of the contributions I made to the HSA in the 2018 tax year? I have a tax form that lists the deductions from the account, but no longer any way of confirming how much I contributed during 2018 (as separate from what my empoyer contributed, which I see on my W2). I did not receive paper statements and don't have access to online records anymore.
Thanks.
Best answer: WageWorks should still be able to give you a detailed print out of all activity on your account since January 2018. Call them back and tell them your accountant is insisting on that to confirm the info you gave them on your taxes this year. Do not tell them any details other than you need this for you taxes so you know what you contributed vs what your employer did and all withdrawls. Keep politely insisting they have the info and they have to send it to you. Your employer does not have all of the detail, so you need it from them.
HSAs have requirements for eligibility, and if you are no longer eligible, you can't open a new one. You can always keep an existing one open, though, even if you lose eligibility. This is why they should not have closed it without your permission.
If your employer won't give you the money, I'd talk to your Attorney General's office. If you get a new job this year and qualify for an HSA with them, you can deposit that money into your new one. Keep all records for next year's taxes, since you may get a form showing you withdrew it all this year.
posted by soelo at 6:05 PM on April 15, 2019 [14 favorites]
HSAs have requirements for eligibility, and if you are no longer eligible, you can't open a new one. You can always keep an existing one open, though, even if you lose eligibility. This is why they should not have closed it without your permission.
If your employer won't give you the money, I'd talk to your Attorney General's office. If you get a new job this year and qualify for an HSA with them, you can deposit that money into your new one. Keep all records for next year's taxes, since you may get a form showing you withdrew it all this year.
posted by soelo at 6:05 PM on April 15, 2019 [14 favorites]
Best answer: Per my HSA, which is not your HSA, but:
The HSA is pretty much a savings account - in your name. I'm amazed that an HSA company would take your employer's authorisation to do anything with it. If there was an overpayment the employer should come to you for reimbursement, and the HSA provider should actively refuse to deal with them without your authorisation, even to the point of revealing balances - like any other savings account.
You may have legal leverage with the HSA provider for doing something they should never have done. I would get on the phone and ask by what authorisation the employer was allowed to close the account, for starters.
posted by How much is that froggie in the window at 8:24 AM on April 16, 2019
The HSA is pretty much a savings account - in your name. I'm amazed that an HSA company would take your employer's authorisation to do anything with it. If there was an overpayment the employer should come to you for reimbursement, and the HSA provider should actively refuse to deal with them without your authorisation, even to the point of revealing balances - like any other savings account.
You may have legal leverage with the HSA provider for doing something they should never have done. I would get on the phone and ask by what authorisation the employer was allowed to close the account, for starters.
posted by How much is that froggie in the window at 8:24 AM on April 16, 2019
« Older Suddenly can't access Amazon Prime through Roku TV | What radical queer political groups exist in the... Newer »
This thread is closed to new comments.
posted by nirblegee at 5:47 PM on April 15, 2019