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Should I expect a 1099-INT from my HSA?

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  • Should I expect a 1099-INT from my HSA?

    I have a HSA account funded through payroll deductions at work. The account earns interest to the tune of .3% or something like that. Should I expect to receive a 1099-INT for this account? It doesn't seem like it would make sense to be forced to declare interest income on an account that is tax deductible . . . but this is my first time filing while participating in an HSA.

  • #2

    You will not receive a 1099-INT but you should receive a 1099-SA.

    On another note: You should also move your HSA. Even in the current climate, you should seek 2.5% APY minimum with no, or minimal, fees involved.


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    • #3
      OP may not have a choice where his or her HSA can be. My employer has an arrangement with a specific bank to place matching HSA funds.

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      • #4
        Originally posted by poundwise View Post
        You will not receive a 1099-INT but you should receive a 1099-SA.

        On another note: You should also move your HSA. Even in the current climate, you should seek 2.5% APY minimum with no, or minimal, fees involved.

        When participating in an HDHP through work, am I able to have an HSA account at any bank I choose? I was under the impression I had to use the Chase account provided by the CIGNA plan . . . but never gave much thought to it (?)

        I suppose it makes perfect sense that as long as I can verify I participate in an HDHP the account could be anywhere, as it's just a checking account, and I could simply opt out of contributing to the Chase account (?)

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        • #5
          Originally posted by sweeps View Post
          OP may not have a choice where his or her HSA can be. My employer has an arrangement with a specific bank to place matching HSA funds.
          We don't get a "match" from our employer, but we can get several bonus contributions for a couple health screening opportunities. I think there is about $200-250 in bonus contributions available per year, which essentially negates any interest I am losing out on.

          I suppose I could always contribute the minimum amount to the work plan to take advantage of the screening bonuses, and have a second high-interest HSA containing a bulk of the balance?

          For what it's worth, the account value is ~$1700

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          • #6
            Originally posted by red92s View Post
            When participating in an HDHP through work, am I able to have an HSA account at any bank I choose?
            As sweeps pointed out, your employer may require you to keep your HSA with a certain institution. Sometimes this is part and parcel of the employer provided health plan.

            It would be worth checking into, just for your own information.


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