lstone19 wrote: ↑
Tue Jan 15, 2019 10:11 am
matto wrote: ↑
Tue Jan 15, 2019 9:58 am
Sorry for the dumb question, but I want to make sure I'm doing things absolutely correctly with a 60 day rollover.
Is your Day 5 step really as simple as using their website: HSA > Request Reimbursement ?
Since I'm not technically 'reimbursing' anything, the wording of reimbursement vs disbursement is throwing me off.
Yes. A rollover is a qualified distribution (or whatever the precise language is). Many of the HSA custodians want you to think that a rollover is something special from their end and confuse you by asking you to provide information about what the distribution is for.
Yeah ... BenefitWallet has this notice prominently at the top of their "Reimburse Myself" page (bold added by me):
Electronic payments will always be coded as a regular distribution and should not be used for trustee to trustee transfers, rollovers or excess contributions.
Reading what SpiritRider and others have written here (and starting to read tax forms, IRS publications, and tax code), my understanding is that the "should not be used for rollovers" part of that statement is WRONG. (I'll grant them the "should not be used for trustee to trustee transfers or excess contributions" part.)
My understanding is that having it coded as a regular distribution is exactly what you want the outgoing HSA provider to do, if you are attempting a 60-day-rollover.
Another potential issue on the "reimburse" method (via ACH or custodian check), however, is that some HSA vendors are (apparently) limiting the amount that can be transferred in one transfer, citing, variously, if I recall correctly, "security concerns" or "the Patriot Act". (If it was "the Patriot Act" I would think it would apply to all HSA custodians, which doesn't seem to be the case, but I have only a small sample from recent threads.) See this post: (viewtopic.php?t=266089#p4253596
Bigger pain is [HSA Bank's] $2,500 / day limit to on-line distribution requests.
and this one (viewtopic.php?t=241923
I tried and tried to get [BenefitWallet] to simply write a check payable to me, in the amount of my balance, but they wouldn't do it. They said it was because my balance was too high (around $35,000) and it was some sort of security precaution.
In any case ... important ... multiple reimbursements to get one's whole balance does not play well (plays toxically, in fact) with 60 day rollovers!!!
See discussion here (make sure to read the whole thread and particularly make sure to read all the way down to where SpiritRider chimes in): viewtopic.php?t=266089
All that said, I, too, due to various foreseen snags with a trustee-to-trustee transfer, find myself being pushed towards a 60-day-rollover, which means getting my money out of the originating HSA (BenefitWallet) all in one go, one way or another.
- admittedly rapidly descending into HSA rollover/transfer paranoia, cas