Accessing HSA Funds

Accessing HSA funds
When you enroll in the HSA, you will receive a SHPS HSA Card that you can use to access funds in your FDIC-insured HSA cash account.* The card is welcome anywhere Visa debit cards are accepted, such as your doctor’s office and pharmacy. Your SHPS HSA Card will also work at any ATM network designated on the back of the card (ATM fees may apply).

If your healthcare provider doesn’t accept Visa, you can also pay with optional HSA checks. Or pay with an alternative form of payment, and then reimburse yourself from your HSA by withdrawing cash from an ATM.

* You will only be able to withdraw up to the funds available HSA cash account.

Accessing HSA funds that have been invested
If you need access to funds that are in your investment account, you can have the funds transferred back to your cash account within a day. Details of this process are provided to you as you approach the $2,000 minimum in your cash account.

Tax implications for spending your funds
HSA funds grow on a tax-deferred basis. Funds spent for qualified medical expenses are not taxable. However, the use of funds for reasons other than qualified medical expenses prior to age 65 is taxable and subject to a 10% penalty.

You will be able to make any necessary tax adjustments will when you prepare your annual tax return. To assist you, SHPS will provide you with both a 5498-SA (tracks HSA contributions) and a 1099-SA (tracks HSA disbursements). This information is also automatically provided to the IRS.

It is recommended you retain all medical expense receipts.