Health Savings Account (HSA) Support

There are no tax penalties to close your HSA. Keep in mind, if you withdraw the remainder of your account when you close your HSA and don't roll over to another HSA or use the dollars for eligible medical expenses, you must report the withdrawals as income on your income tax return and you will owe a 20% additional tax penalty before age 65.

Yes, there are specific forms you will receive to properly complete your income tax return if you have an HSA. Below are a few of the necessary forms you will need to help you file your tax return correctly with the Internal Revenue Service (IRS).

NOTE: American Fidelity Assurance Company does NOT provide tax advice. If you have questions regarding how to fill out IRS Form 8889, you will need to consult a tax professional.

IRS Form 1099-SA reflects all distributions from your HSA for the previous tax year. You will only receive this tax form if you’ve taken distributions for the specific tax year. Forms are mailed out and made available to you through your online account at the end of January.

IRS Form 5498-SA indicates your total contributions from the previous tax year. These contributions can be made up until the federal tax-filing deadline (usually April 15) of the new tax year. Forms are mailed out and made available to you through your online account at the end of May.

If you had contributions deducted from your paycheck, you can find this information already included in your Form W-2 in box 12. You will not have to wait until the end of May for your contribution information.

IRS Form W-2 shows total contributions made to your HSA through your employer (both your own pre-tax contributions and any your employer makes on your behalf) in Box 12W. This form is provided to you by your employer.

IRS Form 8889 is used to report contributions, distributions, and your tax deductions. You or your tax professional will complete this form using IRS Forms 1099-SA and 5498-SA provided by American Fidelity.

IRS Resources:

Internal Revenue Service (IRS) website

IRS Publication 502 – Eligible and ineligible medical expenses.*

IRS Publication 969 – Health Savings Accounts and other tax-favored health plans

IRS Forms 1099-SA and 5498-SA  – Complete instructions for these forms

*While this is a guide, not all expenses in the publication are eligible expenses for reimbursement from the HSA. Please reference American Fidelity’s list of Health Savings Account (HSA) eligible expenses to ensure your expense is eligible under your employer’s plan. Other eligible expense lists may not be tailored to your employer’s plan.

There are two sets of tax forms:

Your annual tax Form 1099 will be mailed to the address on file by January 31 each year.
Your annual tax Form 5498 will be mailed to the address on file by May 31 each year.

If you prefer to have a digital copy, follow the instructions below to download your forms.

Download Instructions: We recommend accessing your forms on a browser and not through the mobile app.

1. Log in to your account and select Manage My Reimbursement Account.
2. Click the red menu on the top left, click My Accounts, then select Benefit Account Summary.
3. Select the Tax Forms link in the Account Resources section. This is located just above your account balance graph.
4. You may be prompted to complete a PDF verification step. Follow the instructions provided.
5. Select the form name to download. 

The fastest way to file a reimbursement claim is through your online account, or on our mobile app, AFmobile^®.

• Online
  • Log in to your online account.
  • Click on the File a Claim button.
  • Select Reimbursement Account(s).
  • Complete the claim form.
  • Click the Submit button.
• AFmobile
  • Touch the Submit Reimbursement button on the AFmobile dashboard
  • Complete the Claim Form
  • Click the Submit button
• Fax or Mail

  • Download and complete the HSA Distribution Request Form. Please note, paper claim filing is not the fastest option.

Although documentation is not required to receive reimbursement for your HSA, it is important to keep all documentation to show proof of eligible expenses in case of an IRS audit.

No, there is no time limit to when you can reimburse yourself, as long as the eligible medical expenses were incurred after you opened your HSA.

For example, if you opened your HSA in January 2021 and had eligible medical expenses in June 2021 but decided to pay out-of-pocket, you can be reimbursed for those funds months or even years later. This is a great way to utilize your HSA as an emergency savings fund for larger expenses down the road. This also helps with saving for retirement. If you reach retirement age with years’ worth of eligible medical expenses, you can still receive reimbursement for these expenses free of taxes. The main thing to remember when applying this strategy is to ensure you keep all your medical receipts and documentation in case of IRS audit.

You are not required to submit documentation to withdraw funds from your HSA. However, we recommend keeping documentation for your records to prove funds were used for eligible medical expenses in case of an IRS audit.

You can open an HSA if you are:

• Enrolled in a qualified HDHP
• Not covered by any other type of health plan, including Medicare
• Not claimed as a dependent on another person’s tax return (excluding spouse)

Yes, but there are a few important things to know.

As the HSA account holder, you are eligible to use your funds, without penalty, for eligible medical expenses of your spouse.

To use HSA funds for dependent expenses, the dependent must be claimed as a dependent on the HSA owner’s tax return. Because of this, a scenario could exist where an employee’s adult dependents are covered on the medical plan, but the employee’s HSA cannot be used to cover medical expenses for those dependents.

HSA Mistakes to Avoid: Spouse Rules

HSA Mistakes to Avoid: Dependent Rules

Refer to the HSA Eligibility List for a comprehensive look at many of the items covered by an HSA.

• You have secondary coverage that is non-HSA compatible.
  • If you are covered by a qualified HDHP and also have secondary coverage through your spouse’s health plan that does not meet the minimum requirements for an HDHP, you would not be eligible to establish a new HSA or make contributions to a current HSA.
• You are claimed as a dependent on another’s tax return.
  • If you are still being claimed on someone else’s tax return, you are not eligible to establish your own HSA. If this is the case, you may still be able to use the HSA funds (if applicable) of the parent or guardian claiming you on their tax return.
• You participate in a general purpose Healthcare FSA or HRA.
  • If you or your spouse participates in a Healthcare Flexible Spending Account (Healthcare FSA) or a Health Reimbursement Arrangement (HRA) that allows for reimbursement of your medical expenses, you are not eligible to establish a new HSA or make contributions to a current HSA.
• You use VA or Indian Health Service medical benefits.
  • If you have accessed VA or Indian Health Service medical benefits, you must wait three months from the time of use of those benefits to make contributions to your HSA. This does not include use of VA or Indian Health Service benefits for preventative care, dental, vision, well-baby visits, and immunizations.
• You are enrolled in Medicare or TRICARE.
  • Once you are enrolled in Medicare or TRICARE, you are no longer eligible to make contributions to your HSA. However, you may still continue to use your funds. If you are age 65 or older, as long as you have not enrolled in Medicare or TRICARE, you may continue to make contributions and use your funds.

For 2023, the contribution limits are $3,850 for single plans and $7,750 for family plans.

For 2024, the contribution limits are $4,150 for single plans and $8,300 for family plans.

If both spouses have an HSA and are eligible to contribute, their total contributions cannot exceed the family maximum, regardless of if they have individual HSA accounts or a family account.

The “catch-up” contribution is $1,000 annually. To be eligible for the catch-up contribution, you must be between the ages of 55 and 65. You are still eligible after the age of 65 if you are not enrolled in Medicare.

We offer three easy ways to contribute funds to your HSA:

Contribute Through Payroll Deduction

Payroll deduction allows you to have contributions taken directly from your paycheck. The funds are deducted pre-tax through your employer’s Section 125 Plan. You may change or stop your contribution amount at any time through your employer. 

Employees should contact their Human Resources department to start payroll deductions.

Contribute Online or By Check

To contribute online, log in to your online account and click Manage My Reimbursement Account. From the home dashboard, select Health Savings Account. Click on the Contributions button, then select Add Contribution.

If you decide to contribute directly to your account, you will need to take the appropriate steps on your annual tax return to receive the tax savings benefit. You may also contribute by check by completing a Contribution Form.¹

Transfer Funds from Another Provider

New or existing account holders may roll over or transfer HSA funds from another provider to American Fidelity. This allows you to consolidate your HSA funds into one account, minimizing account maintenance. Contact your HSA provider for instructions.

1. Log in to your online account or register for one
2. Select the Manage My Reimbursement Account button
3. Under My Accounts, select Health Savings Account box
4. Select the Investment button
5. Select the Apply For an Investment Account button and follow the screens to begin investing your HSA funds

View this step-by-step guide on how to apply for an investment account.

1. Log in to your online account and select Manage My Reimbursement Account
2. Select Health Savings Account under My Accounts
3. Scroll down to the Investment section
4. To manage your funds, select View/Trade

View this step-by-step guide to access the investment site.

While viewing your investment account, click Claims and Spending > Access > Benefit Account Summary > Investments > Transfer to Investments. If a new window does not open automatically, please ensure your pop-blocker is disabled.

Enter the amount that you want to transfer next to Transfer Amount. Then click Submit.

A window will open to confirm that your transfer was submitted successfully. Read the information regarding transfer timing and click Close.

You should then see the transaction as a Pending Transfer.

The HSA Guided Portfolio is a planning tool that helps you create an asset allocation that fits into your HSA investment goals and risk tolerance. After completing a few simple questions about your risk tolerance and how you intend to use and access the money in your HSA investment account. A potential allocation mix is provided.

To access the HSA Guided Portfolio, select Tools & Education > HSA Guided Portfolio > Let’s Begin!

Investment account statements are separate from HSA statements. You will be notified by email when your quarterly statement has been posted. If you do not have an email on file, to access your HSA investment statements, you will need to log in to the member website.

To view your quarterly investment statements, select Activity > Quarterly Statements > Download.

Performance is updated monthly and will be viewable from within your online account.

It takes 1-2 business days to transfer money to/from your HSA investment account. The transferred funds are available in 2-4 business days.

Yes, but the money from your HSA investment account will need to be transferred back to your HSA to pay for eligible medical expenses.

You may find a list of available mutual funds by viewing the Fund Performance Dashboard.

Click on Move Money under the Invest menu option. Here you can enter the dollar amount you wish to pull from the investment account back to your HSA deposit account.

The money will be liquidated from your investment account pro-rata according to your current investment allocations from your investment account.

*For example, if you are requesting $100.00 and you are invested 70% in Fund A, 20% in Fund B and 10% in Fund C, the $100.00 will be pulled $70.00 from Fund A, $20.00 from Fund B and $10.00 from Fund C.

Devenir, LLC is a registered broker-dealer, member FINRA/SIPC and is providing brokerage services to you directly or through third parties. Devenir Investment Advisors, LLC, is a registered investment advisor and affiliated company of Devenir, LLC. Devenir Investment Advisors, LLC has selected, and American Fidelity has accepted, certain mutual funds for inclusion in the HSA investment program. Devenir, LLC, Devenir Investment Advisors, LLC and American Fidelity are separate and unaffiliated firms, and are not responsible for each other’s services or policies.

Yes, you can have both an HSA and an IRA.

Although HSAs operate under many of the same rules that apply to traditional IRAs, an HSA is not an IRA; it is a tax-advantaged savings account for current and future medical expenses.

At age 65 and older, your funds continue to be available without federal or state income tax (in most states) for eligible medical expenses. For instance, you may use your HSA to pay certain insurance premiums, such as Medicare Parts A and B, Medicare HMO, or your share of retiree medical coverage offered by a former employer. Funds cannot be used tax-free to purchase Medigap or Medicare supplemental policies.

However, with enrollment in Medicare, you are no longer eligible to contribute to your HSA. If you reach age 65 or become disabled, you may still contribute to your HSA if you have not enrolled in Medicare.

If you use your funds for eligible medical expenses, the withdrawals from your account remain tax-free. If you use the funds for non-eligible expenses after you turn 65, the distribution becomes taxable but exempt from the 20% penalty.

You may not contribute to an HSA if you are enrolled in Medicare. However, you may still use your existing HSA funds for eligible medical expenses tax-free (in most states). If you choose to use the funds for ineligible medical expenses, and you are age 65 and older, you must only pay income tax on the funds—the 20% additional tax penalty does not apply to you. If you are Medicare eligible, but you have not enrolled in Medicare, you are eligible to contribute to an HSA if you meet all other eligibility requirements.

A Benefits Debit Card allows you to pay for eligible expenses, such as over the counter medicine, prescriptions, medical supplies, and copayments. If your employer has elected to provide a Benefits Debit Card, you may use this card instead of paying out of pocket.

You may use it at most health care facilities, including hospitals, physician’s, dental, and vision offices.

Additionally, many merchants also accept the card. To view a list of participating stores, visit SIGIS Store Locator.

Log in to your online account and select Manage My Reimbursement Account. Then, hover over your name on the top right and click Debit Card(s). Click Report Lost or Stolen next to the appropriate card. Once complete, you will have the option to order an additional card.

Report a Card Lost/Stolen 

If you have additional qualified dependents, you may request a card for them through your online account, or on our mobile app, AFmobile^®. Here’s how:

• Online
  1. Log in to your online account.
  2. Select Manage My Reimbursement Account.
  3. Hover over your username the right side of the navigation bar and select Profile.
  4. At the bottom of this screen, select Add Family Member.
  5. In the Add Family Member window, select the box to Issue Dependent Card.
  6. When complete, click Next and Save.
• AFmobile
  1. Select the Profile, and then select Family Members.
  2. In the Add Family Member window, select the box to Issue Dependent Card.
  3. When complete, click Next and Save.

If you see any suspicious activity with your Benefits Debit Card, report it within 60 days to dispute the charge immediately. The fastest way to dispute a charge is by completing the form online. Here's how:

• Log in to your online account.
• Click the Manage My Reimbursement Account button.
• Expand the fraudulent transaction in either the Claim Activity, Transaction, or Account Activity page.
• Complete and e-sign the dispute form.

You can also dispute a charge by calling us at 800-662-1113.

No additional action is needed on resolved transactions. Please review your transaction history for reimbursement information.

Your Benefits Debit Card is for eligible medical expenses only. Check out this list of HSA eligible expenses. 

No. You do not need to provide documentation for your Benefits Debit Card purchases. However, you should keep all medical documentation as proof of transactions in case of an Internal Revenue Service (IRS) audit.

Yes, you may use your Benefits Debit Card for both accounts. Eligible vision and dental expenses will be deducted from your LPFSA first, because those funds expire at the end of your plan year. When your LPFSA funds have been used up, your HSA funds will be deducted.

When you use your Benefits Debit Card to pay for eligible medical expenses, the amount is deducted straight from your account. Here are other methods of paying for eligible medical expenses:

Out-of-Pocket

With an HSA, funds are available in your account as contributions are made. If funds are not yet available at the time a payment is due, you may pay out of pocket and reimburse yourself when you have funds in your account with the following methods:

Online Bill Pay 

You can choose to reimburse yourself for any eligible medical expenses or pay your provider directly from your online account using our online bill pay option.

Online

1. Log in to your online account
2. Select Manage My Reimbursement Account
3. Select your name in the right-hand corner of the screen.
4. Select Debit Card(s)
5. Select the card you want the PIN number for
6. Select View PIN

AFmobile 

1. Log in to AFmobile
2. In the Reimbursement Accounts section, select See All
3. Select Manage your accounts
4. Select Menu
5. Select the My dropdown, then select Debit Card(s)
6. Select the card you want the PIN number for
7. Select View PIN