Human Resources

Yes, the individual who establishes the HSA is required to maintain a record of the expenses sufficient to demonstrate that the distributions were for qualified health expenses.

The IRS will make this determination based on disbursements reported on your annual tax return. You do not submit records with your IRS return, but it is your responsibility to maintain records for all of your expenses in the event the IRS requests them. Specifically, the IRS requires that you must be able to show that:

• The distributions were exclusively to pay or reimburse qualified health expenses,
• The qualified health expenses had not been previously paid or reimbursed from another source, and
• The health expenses had not been taken as an itemized deduction in any year.

After you open an HSA, you can use funds to pay for covered expenses that apply toward the HDHP annual deductible and coinsurance costs (e.g. medical services, prescriptions, mental health services, etc). You can also pay for qualified health expenses that your health plan might not cover, such as vision care (eyeglasses and contact lenses), dental and orthodontic services. Qualified health expenses also include long-term care premiums, Medicare premiums, Medicare copays, and COBRA premiums. Detailed information about qualified health expenses can be found in Section 213(d) of the Internal Revenue Code and IRS Publication 502. A Summary of the HSA Eligible Expense List is also available.

You can use your funds as soon as they are deposited in the account. Remember this is different from the Healthcare FSA, where the entire pledge is available on January 1. HSA funds only become available for use after they are deposited. 

Funds in the HSA can only be used for expenses incurred from the date the account is established. For newly enrolled employees, that would be the date the HSA is opened. For employees that transferred their existing HSA balances to WEX, the HSA will be considered established as of the original date that the original account was opened.

Contact WEX at 800-284-8412 or at to learn how to transfer any existing HSA balance to your WEX HSA.

Once contributions are made to your account, you can access your funds in several different ways:

• Use the IU Benefit Card at healthcare provider locations*. The IU Benefit Card is a debit-type Visa card that can be used to pay for your eligible expenses at the time of service at any healthcare provider, such as doctors’ offices, pharmacies, hospitals, labs, vision care providers, dental offices, chiropractor’s offices, etc.
• Pay immediately by swiping your card
• Write the card number on the provider’s bill and return to your provider
• Make an HSA Distribution online. Log in to your account at iu.nyhart.com and select Your Balances on the home screen. Then select the File Claim/Reimburse Self button on your account page.
• Send yourself one-time or repeating checks to reimburse yourself for healthcare bills that you pay out of pocket (a $10 fee is charged for each check distribution sent to yourself)
• Send a payment to a provider directly from your account (no fees apply for payments made to providers)
• Transfer funds directly from your HSA to a personal bank account (no fees apply).

* Special rules apply to the IU Benefit Card when enrolled in both the HSA and the Healthcare Flexible Spending Account (FSA). Learn more.

No. You can only use your HSA funds for expenses incurred after your account is established. If you transferred an existing HSA balance to WEX, your account is considered to have been established as of the date the original account was established. This means that you can use the funds in your HSA for any expense that you incurred since the original date that your transferred HSA was established.

No, you can reimburse yourself for eligible expenses with future contributions or past contributions—there is no time limit on this. The only restriction is that the service must have occurred after the HSA was opened.

No. You have your entire lifetime to reimburse yourself. As long as your HSA was established at the time the expense was incurred, you saved the receipt, and it was not otherwise reimbursed, you can reimburse yourself for the expense from your HSA at any time, even years later.

No.

You can only withdraw an amount up to the balance in your account. Check your balance online prior to withdrawing funds to avoid Insufficient funds fees or denial of the charge.

Yes, you can use your HSA funds to pay for the qualified health expenses of yourself, your spouse* or your IRS-qualified tax dependents. This is true even if they are not covered on your medical plan.

* A spouse means one by marriage, either opposite-sex or same-sex, legally entered into in one of the 50 states, the District of Columbia, or a U.S. territory or a foreign country. Spouses qualify for preferential federal tax treatment of health care benefits.

** Please note that the healthcare reform law has made it possible for parents to keep children up to age 26 on their health plans if they have no other coverage – even those who are married and living away from home. However, HSA funds can only be spent on family members who qualify as tax dependents as defined by IRS tax rules. In order to be treated as a qualifying child, an individual must not have attained the age of 19 years old, or 24 if a student, before the close of the tax year.

See the IRS Test for “A Qualifying Child”.

Yes. The age requirement (i.e., that the qualifying child be less than 19 years old, or 24 if a student) does not apply if the child is permanently and totally disabled at any time during the calendar year.

No.  IRS rules require that the child not attain the specified age (age 19 or 24 if a student) as of the close of the tax year. The child attains their specific age on the anniversary of the date the child was born. 

You will have to pay the difference between your expenses and your HSA balance out of pocket, then reimburse yourself once additional funds are deposited in your HSA. Check your balance online prior to withdrawing funds to avoid Insufficient funds fees.

When your HDHP coverage ends, you are no longer eligible to make or receive tax-free HSA contributions. However, the money in your HSA is yours until you spend it. As a result, you may keep your HSA with WEX and continue to use the funds to pay for qualified expenses. Because you are no longer an active employee, you will be responsible for the account maintenance fees (see HSA Fee Schedule).

If you become eligible again, i.e., you re-enroll in a HDHP, you can make additional contributions to your HSA. Please remember that you are responsible for tracking your personal contribution limit, including coordinating contributions with your spouse if they also contribute to an HSA). Contact your tax advisor if you have additional questions about your specific situation.

Remember, if you term your HDHP coverage in the middle of a calendar year, your maximum contribution for that year is prorated based on the number of months that you were enrolled in an HDHP plan. Learn more about prorated maximums.

You can return the money to your account if there is clear and convincing evidence that the withdrawal was a mistake. To do this you must contact WEX and request a Return of Mistaken Distribution form. The funds must be repaid by April 15th of the year following the error.

Yes! Funds in your HSA can be used to pay for all qualified health expenses incurred after the account was opened. These expenditures are tax-free, even if you no longer have HDHP coverage. The funds in your account roll over automatically each year and remain indefinitely until used. There is no time limit on using the funds except that you cannot use the funds for expenses incurred before the HSA was opened.

Turning 65 has no impact on the funds in your HSA. You can continue to use your account tax-free for eligible health expenses. Additionally, when you enroll in Medicare, you can use your HSA funds to pay Medicare premiums, deductibles, copays, and coinsurance under any part of Medicare.

Once you turn age 65 you can also use your account to pay for things other than qualified health expenses. If used for other expenses, the amount withdrawn will be taxable as income but will not be subject to any other penalties. Individuals under age 65 who use their accounts for non-health expenses must pay income tax and a 20% penalty on the amount withdrawn.

No. You may not borrow against it or pledge the funds in it. For more information on prohibited activities, see Section 4975 of the Internal Revenue Code.

Yes. The IU Benefit card can be used at any healthcare provider where Visa is accepted.

You are responsible for verifying that the expense is a qualified medical expense under Section 213(d) of the Internal Revenue Code and IRS Publication 502.

Regarding foreign exchange rates (if applicable), any card transaction outside of US currency is subject to the current daily exchange rate established by VISA. Depending on the card, you could be charged a markup or a conversion fee. These fees are like what you'd pay for any other credit card and can range anywhere from 1 - 3% depending on the provider. Check with your provider regarding these fees.

HSAs are only offered in the U.S., as they are a U.S. tax benefit. You can leave the funds in your HSA and use your IU Benefit card for eligible healthcare expenses you incur overseas, as noted above. If the funds are transferred to another HSA custodian, there are no tax implications for this. However, if the account is closed and funds are transferred to a non-HSA custodian, there could be tax implications. Funds from the HSA must be deposited in a U.S. bank, as they cannot be directly transferred to an overseas bank account. For advice about tax matters please consult a personal tax advisor.