How Taxes Work with HSA Bank Fees

Health Savings Account (HSA) Tax Benefits Money goes into and comes out of an HSA tax-free (as long as funds are used to pay for qualified medical expenses). Earnings to an HSA from interest and investments are tax-free. Distributions from an HSA to pay for qualified medical expenses are tax-free.

Does HSA Bank charge a fee?

Important Fee Information

Printed HSA Account Summary Fee $1.50 Your monthly fee if you opt out of free e -statements. HSA Closure Fee $25.00 To avoid this fee, keep your account open with HSA Bank and continue to use your HSA funds for eligible expenses.

Are HSA service charges deductible?

If the administration fee was paid directly from the Health Savings Account (HSA), then the amount is not deductible. Funds in the HSA have either been put into the account without having been taxed, or a deduction has been taken for them. Therefore, to deduct the administration fee would be “double-dipping”.

Why does HSA charge a fee?

However, all providers who let you invest your HSA funds charge investment fees, and often more than one type. For example, you might pay an annual fee to your HSA provider for oversight of the underlying investments in your HSA, but you will also pay expense ratios that vary depending on the investments you choose.

How do I avoid HSA admin fees?

Waiving fees

Your monthly administration fee may be waived if you maintain a cash balance over $2,500.

What is an HSA service fee?

HSA Service Fee. $1.75. To avoid this monthly fee, maintain an average HSA Bank cash account daily balance at. or above $3,000.2.

Does Fidelity HSA charge fees?

There are no fees for opening a Fidelity HSA^®. If you choose to invest in mutual funds, expenses will still apply for those funds.

Do HSA fees count as distributions?

HOW ARE HSA DISTRIBUTIONS TAXED? HSA distributions are exempt from income taxes if all of the funds are used to pay qualified medical expenses that were incurred after the HSA was established.