What happens if an HSA distribution is made as the result of a factual mistake?

If there is clear and convincing evidence that amounts were distributed from an HSA because of a mistake of fact due to reasonable cause, the accountholder may repay the mistaken distribution no later than April 15 following the first year they knew or should have known the distribution was a mistake. Under these circumstances, the distribution is not included in their gross income or subject to the 20 percent additional tax, and the repayment is not subject to the six percent excise tax for excess contributions. Individuals could use the UMB HSA Contribution form to send with their repayment, indicating “Re-Deposit” on the form.

Introducing UMB HSA Saver

UMB HSA Saver is a unique investment platform designed with ease in mind. Account holders can easily research, buy and sell funds with a couple clicks.

How to Use ReceiptVault

HSAs are available to help pay for current qualified medical expenses as well as to save for future expenses, all in a tax-exempt account.

Take the guesswork out of HSA Administration

The UMB HSA empowers you with robust analytics, reporting tools and the communication support you'd expect from a top 10 HSA custodian