Self-directed HSA

Technical topics regarding tax preparation.
#1
JoJoCPA  
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Self-employed client, whose husband just retired in 2021, met with an insurance advisor who recommended she start an HSA towards the end of 2021. So she went to her local bank and they told her to set up a separate business checking account and make her contributions to that and pay her medical expenses from that account. They said that's what lots of their customers with HSAs do. And they do not provide 1099s.

Is that okay? Seems very odd to me.
 

#2
HowardS  
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And they do not provide 1099s.

That's wrong. My bank offers an HSA custodial account and they state that they provide form 1099-SA if there are withdrawals.
The model application form 5305-C requires filing any form or report required by the IRS. I haven't researched the reporting requirements but I'll wager 1099-SA is required.
Retired, no salvage value.
 

#3
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Even a self-directed HSA needs to have a qualified trustee....
Here's one option I found online. Any old regular bank account doesn't work as an HSA.
https://americanira.com/self-directed-h ... 20an%20HSA.
~Captcook
 

#4
JoJoCPA  
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That's my thinking too. Argh. Now what do I do....always something.
 


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