What to Do If Refunded Money from Bill Paid with HSA Funds? - HSA Health Savings Account Guide

So you've paid a medical bill using your HSA funds, but now you've received a refund for that payment. What should you do next? Don't worry, we've got you covered!

Here is a step-by-step guide on what to do if you receive refunded money from a bill paid with your HSA funds:

1. Contact the healthcare provider: Reach out to the provider who issued the refund and inquire about the reason for the refund.
2. Verify the HSA reimbursement eligibility: Make sure that the original expense was qualified for HSA reimbursement.
3. Repay the HSA account: If the refunded amount is eligible, you should return the money to your HSA account to maintain compliance with IRS regulations.
4. Keep records: It's crucial to keep detailed records of all transactions and refunds related to your HSA for tax purposes.

If you've found yourself in the situation where a medical bill paid with your HSA funds has been refunded, it's important to follow the right steps to handle the situation properly and ensure your HSA remains in good standing.