Debit a Health Savings Account to Cover Loss?

Question:

Our customer had a regular checking account that was overdrawn. San we debit a health savings account to cover our loss then close the regular checking account?

Answer:

Any right of offset you may have is governed by state statute, court decisions, and the language of your contract. You would need to consult with an attorney who has read all of that information for a competent opinion.

However, the "black letter law" regarding the right of offset relies on "unity" of ownership. That does not exist here. You hold the HSA account as a fiduciary and I imagine your attorney will tell you that any action you take along these lines would be a breach of your fiduciary duties.

First published on BankersOnline.com 7/8/13