OptumHealthBank.com - Reporting to the IRS

Employer or Broker: Visit OptumHealth Financial Services

My Account: Log On | Enroll

Track your expenses with our Expense Tracking Worksheet (PDF)

For detailed information about tax reporting for your HSA, visit the IRS Web site or consult with your tax advisor.

NEED TO KNOW

Each state decides whether to follow federal tax guidelines for HSAs or create its own.

Find out what your state requires

Reporting to the IRS

To take advantage of your HSAs tax benefits, you'll have to report your HSA activity to the IRS.

Your Responsibilities
It's up to you to keep track of receipts for expenses you pay for with your HSA. You'll get tax forms that detail your distributions for the year. If any of your distributions were used for ineligible medical expenses, you are responsible for reporting that to the IRS on IRS Form 8889.

Special Tax Implications
Keep in mind the following scenarios that can affect how your HSA is taxed:

Transfers - If you choose to transfer funds from one HSA to another, you must do so within 60 days of withdrawing the funds to avoid a 10 percent tax penalty.
Excess contributions - If you contribute more than the allowable amount to your HSA by accident or because you ended coverage in a qualified health plan, you will have to count the extra amount as taxable income and pay a 6% penalty. To avoid paying taxes and incurring a penalty, you can fill out a Withdrawal/Distribution Request form (PDF) to have excess funds returned to you.
Non-medical expenses - If you are 65 or older or enrolled in Medicare, you can use your HSA for non-medical expenses without incurring a tax penalty. Those distributions will be treated like retirement income and will be subject to normal income tax.

Health savings accounts (HSAs) are individual accounts offered by OptumHealth Bank^SM, Member FDIC, and are subject to eligibility and restrictions, including but not limited to restrictions on distributions for qualified medical expenses set forth in section 213(d) of the Internal Revenue Code. This communication is not intended as legal or tax advice. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment, and restrictions. Federal and state laws and regulations are subject to change.

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