Frequently Asked Questions about HSAs
How do I use my HSA to pay for qualified medical expenses?
It's easy to use the funds in your First Horizon HSA. Funds can be accessed at any participating ATM with your HSA debit card, or you can pay for expenses directly at the point of sale. If you have already paid for expenses out of your own pocket, you can reimburse yourself by withdrawing funds from an ATM. No matter how you access your HSA funds, be sure to retain copies of all receipts as proof that funds were used to pay for qualified medical expenses.
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What is a qualified medical expense?
Click here for more information on what is considered a qualified medical expense, including a partial list of qualified expenses.
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What happens if I accidentally use my HSA funds to pay for a non-qualified expense?
If funds in the account are used to pay for non-qualified medical expenses, you will need to claim the amount as income on your tax return, and you will be subject to a 10% penalty if you are under age 65. However, you can avoid taxes and potential penalties if the funds are repaid by April 15 of the year following the year when the distribution took place. Contact First Horizon Msaver for more information.
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Can I use my HSA funds to pay for medical expense incurred before I opened my HSA?
No. You cannot use funds to pay for expenses you incurred before your HSA was opened. You can use funds to pay for expenses incurred in previous years, as long as those expenses were incurred on or after the date your HSA was opened. For this reason, it is important to open your HSA as soon as possible following the effective date of your high-deductible health plan.
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Who is responsible for tracking how my HSA funds are used?
First Horizon Bank tracks the total amount of funds distributed from your HSA and provides that information to you and the IRS in Form 1099-SA, sent out each year before January 31. However, you are ultimately responsible to the IRS to justify all HSA distributions. It is important to retain copies of all paperwork and receipts showing that HSA funds were used to pay for qualified medical expenses.
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What happens to the funds in my HSA at the end of the year?
The funds in your HSA roll over and continue to grow from year to year. You can continue to make the full HSA contribution each year provided all eligibility requirements are met.
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Can I have an HSA and an FSA at the same time?
Yes, provided that the FSA is set up as a limited purpose FSA (typically used to pay for vision and dental expenses).
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Can I transfer my HSA from another institution to First Horizon Bank?
Yes. Transferring your account is easy, and we will work with you to facilitate the process. To initiate a transfer from another financial institution to First Horizon Bank, simply complete the Request to Transfer Form and send it by fax or mail to First Horizon Msaver. Once we receive the completed transfer form, we will work directly with the transferring institution to have funds deposited into your First Horizon HSA. After you submit your transfer request, you should refrain from using your old HSA account until the transfer is complete.
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What happens to my HSA if I am no longer covered under a eligible high-deductible health plan?
You can continue to use the funds in your HSA to pay for eligible medical expenses. However, you cannot make additional contributions to the account if you are no longer covered under a qualified high deductable health plan.
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