Why do I have 2 HSA accounts?
Asked by: Mr. Xander Weber I | Last update: January 13, 2026Score: 4.9/5 (5 votes)
What happens if you have two HSA accounts?
If you choose to have another HSA with a different HSA administrator and make your own contributions to it (outside of your employer's payroll system), you'll be able to deduct those contributions on your tax return. When you do that, you'll avoid income tax on the contributions, but you can't avoid payroll tax.
Why did I receive two HSA cards?
It's possible and common to have multiple HSAs—health savings accounts you can fund to cover qualified medical expenses for yourself, your spouse and your dependent family members. You may have collected them over the years from different employers, or perhaps you and your spouse each have one.
Can I merge two HSA accounts?
Do you have more than one Health Savings Account (HSA)? You can easily transfer or rollover your existing HSA into one account. HSA Bank is dedicated to our members and available to support you every step of the way. Our goal is to ensure that your HSA transfer or rollover is easy and seamless from beginning to end.
How do I know if my HSA is individual or family?
While often referred to as a “Family HSA” account, there is actually no such thing. Each HSA is owned by one person. But family coverage under a qualifying HDHP allows you to use your HSA to pay for qualifying medical expenses for yourself and your family.
The Real TRUTH About An HSA - Health Savings Account Insane Benefits
What is the 12 month rule for HSA?
It means you must remain eligible for the HSA until December 31 of the following year. The only exceptions are death or disability. If you violate the testing period requirement, your ineligible contributions become taxable income.
Can I change my HSA from individual to family?
Changes in status, such as marriage or a birth of a child, could change your coverage from individual to family or, in the cases of divorce or death of a spouse, from family to individual.
What happens to unused HSA funds?
Unlike many flexible spending accounts (FSAs) and health reimbursement arrangements (HRAs), unused HSA funds automatically carry over to the following year. Even if your employer provided the account and made contributions, the account belongs to you — so any remaining funds are carried over every year.
Can you use HSA for dental?
Your HSA also covers expenses for standard dental cleanings and dental check-ups. One thing to keep in mind is that some of these procedures may have a co-payment, so it's important that you check with your dental insurance provider to find out exactly what you'll have to pay out of pocket.
What happens if I accidentally use my HSA card for food?
Yes, you read that correctly—even if you accidentally paid for a burger with your HSA debit card, you will have to report it on your annual income tax return and pay taxes on it. If you're under 65 and spend the money on unqualified purchases, you must also pay a 20% penalty on top of the income tax.
Why is my HSA showing as income?
If your employer is deducting your HSA contributions from your paycheck but does not have a Section 125 plan allowing the contributions to be calculated before taxes, your HSA contributions would be considered income (this is rare, but it can happen).
What happens if you never use your HSA?
Myth #2: If I don't spend all my funds this year, I lose it. Reality: HSA funds never expire. When it comes to the HSA, there's no use-it-or-lose-it rule. Unlike Flexible Spending Account (FSA) funds, you keep your HSA dollars forever, even if you change employers, health plans, or retire.
What happens if I put too much money in my HSA?
Contributing more to your health savings account (HSA) than the IRS limit for the tax year creates excess contributions. All excess contributions are subject to income tax and a 6% excise tax each year until corrected.
Can I combine my wife's HSA with mine?
If you and your spouse each have HSA-qualified health coverage, and you both plan on contributing to your HSAs, you must have separate accounts. This is true even if you're both covered by the same high-deductible health plan. Additionally, whether you have a single or family plan affects the limits for HSAs.
What are the rules for HSA accounts?
- You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.
- You have no other health coverage except what is permitted under Other health coverage, later.
- You aren't enrolled in Medicare.
Can HSA pay for gym membership?
Gym memberships. While some companies and private insurers may offer discounts on gym memberships, you generally can't use your FSA or HSA account to pay for gym or health club memberships. An exception to that rule would be if your doctor deems fitness medically necessary for your recovery or treatment.
Are tampons HSA-eligible?
With the passage of the CARES Act in March 2020, tampons and other menstrual care products are now fully FSA-/HSA-eligible. According to the text of the bill, menstrual care products include, “tampon, pad, liner, cup, sponge, or similar product used by individuals with respect to menstruation…”
Can I use HSA for glasses?
Yes! You can definitely use funds from your flexible spending account (FSA) or health savings account (HSA) to purchase prescription glasses. (FSAs and HSAs can be used for many other vision- and eye health-related expenses, too, but we'll discuss that more in a bit.)
Can I ever cash out my HSA?
As a practical matter, you are allowed to withdraw funds from your HSA at any time for any reason. But if you aren't using the funds to cover a qualified medical expense, then you'll be stuck paying a penalty tax.
What happens to HSA at death?
What happens to an HSA at death? Like an IRA account, when a person sets up an HSA, they name a beneficiary. If the beneficiary is a surviving spouse, the unused portion of the decedent's HSA passes directly to the spouse and becomes his or her HSA; there is no tax liability.
What happens if I use my HSA card for non-medical?
If used for other expenses, the amount withdrawn will be taxable as income but will not be subject to any other penalties. Individuals under age 65 who use their accounts for non-qualified medical expenses must pay income tax and a 20% penalty on the non-qualified withdrawal.
How much should I put in my HSA per paycheck?
You can start small, perhaps setting aside $25 to $50 per paycheck. Consider also trying to cut back on non-essential spending, such as foregoing one of your app subscriptions, reducing meals out or making your morning cup at home versus going to a coffee shop.
Do I have to report my health savings account on taxes?
HSA distributions are reported to the account owner on Form 1099-SA. This form is issued by the financial institution. Form 8889 must be filed with your annual Form 1040 federal tax filing if you make contributions to or take distributions from an HSA.
What is the 6 month rule for HSA contributions?
If you do not stop HSA contributions at least six months before Medicare enrollment, you may incur a tax penalty. If you require counseling around HSAs, consult a tax professional.