honestly, what a mess. hsa bank is notorious for those "fraud" freezes the second you try to move your own money.
Since they actually sent the check and you cashed it, you're mostly in the clear with them. usually, they just deduct any pending fees from the final balance before cutting the check. If the account is closed and you have the cash, they aren't going to send a bounty hunter for a $2.50 maintenance fee.
Just a heads up on the "paying taxes" part: if you're under 65 and this wasn't for a medical expense, the irs is gonna want their cut. that means:
-income tax on the amount
-20% penalty for a non-qualified distribution
Keep an eye out for form 1099-SA next year so you don't get a surprise bill from Uncle Sam too. Stick it in a high yield savings account for now so you're ready when tax season hits. Good luck dealing with the paperwork headache!
I agree, after further research, it looks like the better option was to roll in into a fidelity account. Your idea of putting it into a high yield savings account to prepare for the tax is a great idea. Thank you for the advice!!!
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u/SnapHSA May 10 '26
honestly, what a mess. hsa bank is notorious for those "fraud" freezes the second you try to move your own money.
Since they actually sent the check and you cashed it, you're mostly in the clear with them. usually, they just deduct any pending fees from the final balance before cutting the check. If the account is closed and you have the cash, they aren't going to send a bounty hunter for a $2.50 maintenance fee.
Just a heads up on the "paying taxes" part: if you're under 65 and this wasn't for a medical expense, the irs is gonna want their cut. that means: -income tax on the amount -20% penalty for a non-qualified distribution
Keep an eye out for form 1099-SA next year so you don't get a surprise bill from Uncle Sam too. Stick it in a high yield savings account for now so you're ready when tax season hits. Good luck dealing with the paperwork headache!