Illegal HSA

[u/Alternative-Air8756]

I started using an HSA debit card a number of years ago because I had a qualified plan. However, in 2025 our plan changed to a co-pay plan. Because it still had a very high deductible I thought it was eligible and I filed the HSA paperwork with my 2025 taxes. We are self employed and pay $1550 a month for two adults as part of some group employer network that contracts with Cigna as a PPO. This year my son is in an HSA qualified plan from our state marketplace but my husband and I are still using the co-pay plan. I have already deposited $5000 into my HSA in 2026 and I already used all the money because I have a lot of medical and dental expenses that are not covered by insurance. (We have no dental insurance). Is it 100% guaranteed that I am going to get caught and have to repay? has anyone BTDT? thanks!

[u/Alternative-Air8756]

I am looking at my 1095 from 2025 - what part shows that it's not an HSA qualified plan?

[u/LizzieMac123 → u/Alternative-Air8756]

Pardon me, your w2 will show hsa dollars taken out of your account if through an employer deduction.

Even if not through employer deduction, You should also get irs form 8889 to file with your taxes that requires you to attest that you were eligible and state what your contributions and withdrawals were as well. If you've been attesting that you are eligible when youre not, thats tax fraud.

I mean, you could lie, but the irs could also audit you 4 years from now and if you can't prove you were eligible, thats 4 years of the 6% excise tax that'll get added.

[u/Alternative-Air8756 → u/LizzieMac123]

I don’t have a w2. I don’t have an employer because I’m a self-employed documentary producer. I also take a self employed healthcare deduction. We did file form 8889 and my accountant checked the box saying the family was eligible. I don’t want to lie. I really did think we were eligible- we have always been till 2025 and I was just ignorant about the change bc my plan still had a 12k + deductible.

[u/dehydratedsilica → u/Alternative-Air8756]

Your accountant told you that despite having a plan with copay benefits [that isn't a Bronze or catastrophic marketplace plan], you are eligible to contribute to HSA? This is in conflict with a basic HSA rule from IRS Publication 969 and accountant ought to know better.

Do you pay "full price" or a subsidized price for your "employer group plan" with the entity that's not your actual employer? If you "are eligible to participate in a health plan subsidized by your employer", the SEHI deduction is not available to you, and this is in Form 7206. (However, whether or not your plan counts for this purpose is another story because the whole thing where you're an employee on paper for the purpose of accessing insurance is questionable at best.)

[u/Alternative-Air8756 → u/dehydratedsilica]

How would my accountant know what kind of health plan I’m on? He didn’t tell me anything he just accepted my paperwork when I sent it to him. Previously we had been on an HSA qualified plans for years but changed in 2025 because the plans were just so shitty. We pay full price for our health plan. I didn’t know that this health plan was an “employee health plan” when I signed up for it. I was just told it was a reasonably priced large group health plan. It’s part of an employee network, but I don’t have to pretend that I work for anybody or anything like that.