Scenario | Action | Resolution |
You want to close your HSA and transfer your funds to a new HSA custodian. | 1) Check the box in Step 2 to close your HSA. 2) Check "Transfer" as the distribution type. 3) Add the new custodian's information on the right-hand side. | Your funds will be sent to your new HSA custodian at the address you include on the form. Important: We recommend contacting your new HSA custodian and confirming the address to send transfer funds to before submitting your form. |
You want to close your HSA and roll the funds over to a new HSA custodian. | 1) Check the box in Step 2 to close your HSA. 2) Check "Rollover" as the distribution type. | Your funds will be sent directly to you. Important: You are responsible for rolling the funds over to your new HSA custodian within the designated timeframe. If you don’t, you may be subject to additional taxes per the IRS. |
You want to close your HSA and do not intend to roll the funds over to a new HSA custodian. | 1) Check the box in Step 2 to close your HSA. 2) Check "Normal" as the distribution type. | Your funds will be sent directly to you. Important: Any part of a distribution not used to pay qualified medical expenses is includible in gross income and is subject to an additional 20% tax unless an exception applies, according to the IRS. |
For help:
Contact WEX 866-451-3399