Health Savings Account error
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: I just realized that I'm doing something that is probably very wrong. I financed my daughter's braces and have been making the payments (including interest) out of my HSA. Can I find out how much interest I've paid and pay it back into my account then just pay the interest out of another account? I'm already depositing the maximum amount allowable so if I deposit the interest back into the account, will that put me over the maximum allowed
A: Yes, assuming this is all in the current tax year then simply redeposit the amount of the interest back into the health savings account and the problem will be solved. These types of corrections are allowed; this will not cause an excessive contribution. If you made an error in a prior tax year the decision of whether or not to amend your previously filed tax return often depends on issues other than what we are discussing here. Generally, the amount of money involved this this type of error would not warrant filing an amended return.
Summary
More resources:
www.healthsavingsaccount-hsa.com