Yes, I am aware of that, but I am wondering what other institutions are doing to prevent overdrafts. For example, do you not allow fees to overdraw the HSA? Do you close the HSA if it ever becomes overdrawn? We are closing the HSA even if it has become overdrawn by a $2 fee, for example, and we are getting a lot of push back from our corporate customers (whose employees set these up) claiming that other financial institutions do not require the account be closed.
We close and report a prohibited distribution of the fair market value of the HSA as of January 1 of the year of the overdraft.