If I put money back in my Health Savings Account within 60 days, will I face a tax and penalty?
I have a Health Savings Account for medical expenses. In her excitement over being able to purchase a Wii, my wife accidentally grabbed the HSA checkbook and wrote a $250 check. The check has already been electronically sent and cannot be exchanged for the right one. Am I covered by Rollover rules if I re-deposit this money within 60 days from my taxed income?
Would I be better off then filing the tax form and paying taxes plus 10% penalty rather than paying a stop check fee to my HSA custodian and a returned check fee to the store? It seems I’d save money just paying the taxes and penalty.
Rewind.
Won’t you have other unreimbursed medical expenses in December? If these add up to $250 or more you are covered.
If not, you have the difference as income and a small penalty.
There’s no need to stop payment on a check and incur $100 in fees.
George W Bush should hide his head in shame! .