I think I've read every HSA thread on the site, but I still can't find a consensus on OD/NSF fees. Who's charging OD fees on HSAs? It doesn't happen very often, we don't pay checks or overdraw the accounts, but can we charge for processing NSFs? One post referred to "administrative" fees, but that seemed to refer to an annual fee. Customers have been asking for a debit card, which could cause additional OD issues if we go that route.

What do you do?

Thank you very much,

Deb

We don't offer these accounts, but employees were offered HSA's thru a larger regional bank. The disclosures provided stated OD fees were applicable. We were also issued a debit card.

We don't offer these accounts, but employees were offered HSA's thru a larger regional bank. The disclosures provided stated OD fees were applicable. We were also issued a debit card.

Thanks for your response Edge. I e-mailed the question to the Treasury HSA info address and this was their reply:

If you pay an overdraft fee from the account, any later repayment through the account is a contribution, that will be an excess contribution if the person has already contributed the maximum. So the immediate withdrawal would need to be coded as a withdrawal of an excess contribution. The overdraft fee itself is not a normal administration fee, so it cannot be treated as a medical expense, but if it is in fact an excess contribution, that won't matter.

So, I'm still on the fence. It would appear to be a headache, especially when I don't foresee these accounts being overdrawn too often. If we coded the withdrawal of the fee incorrectly, it could cause worse headaches than its worth. (If I'm interpreting the reply correctly.)

Any other thoughts?

Deb