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Easy Access to Your HSA Money

Swiping your debit card is the easiest way to use your HSA money. You can also request a withdrawal at any time for any reason. Non-medical withdrawals are taxed as ordinary income and subject to a 20% tax penalty unless you’re disabled or over age 65.

Save your supporting documentation! If you are ever audited by the IRS, it will be your responsibility to prove which amounts withdrawn from your HSA, including debit card transactions, were for qualified healthcare expenses. Usually, an Explanation of Benefits (EOB) from your insurance company, a detailed invoice from your healthcare provider, or an itemized receipt from your pharmacy or other healthcare merchant has everything you’ll need.

Debit Card

Your Gallagher HealthInvest HSA comes with a free OneBridge Visa® Benefits Card (debit card). Just swipe your card to make qualified healthcare purchases or payments directly from your HSA. If you have an HRA or FSA on our platform, your card will automatically draw from the most appropriate account—usually in this order: FSA > HRA > HSA.

Your debit card will work only at healthcare facilities or retailers with a health-related merchant category code. Several common examples are listed below.

  • Medical offices (doctor, dentist, orthodontist, optometrists, chiropractors, specialists)

  • Pharmacies and drug stores (CVS, Walgreens, Rite Aid, local pharmacies)

  • Online retailers  HSAstore.com, Amazon.com, Walmart.com)

  • Healthcare facilities (hospitals, urgent care clinics, labs)

You can request additional cards for family members who may use your HSA. There are no card fees.

Withdrawals

You can make two types of withdrawals directly from your HSA as described below.

  • Qualified Distribution (tax-free). A withdrawal for qualified healthcare expenses is called a “qualified distribution.” To be eligible, the expenses must have been incurred on or after the date your HSA was first opened. However, you can wait weeks, months, or even years to withdraw these amounts from your HSA. There is no time limit. Qualified distributions are not taxable, but you must report them on IRS Form 8889. Keep your healthcare expense receipts with your tax records.

  • Non-qualified Withdrawals (tax + penalty). Taking money from your HSA for non-medical reasons is called a “non-qualified withdrawal.” These types of withdrawals are taxed as ordinary income, and a 20% penalty applies unless you’re disabled or over age 65. You must report non-qualified withdrawals on IRS Form 8889.

To quickly and easily submit a withdrawal request, log in online or from the mobile app, HRAgo® (for HSAs, too), and click Request a Withdrawal. Payment will be issued within three business days. If you haven’t signed up for direct deposit, please allow at least five days for mail delivery of your paper check.

All withdrawals, including debit card spending, are reported on IRS Form 1099-SA, which we will furnish by January 31 each year. Use this form to complete IRS Form 8889. Submit IRS Form 8889 with your tax return. Keep IRS Form 1099-SA with your tax records.

The OneBridge Visa® Benefits Card is issued by The Bancorp Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used for qualified expenses wherever Visa debit cards are accepted. See Cardholder Agreement for details.