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Old 12-04-2018, 05:58 PM
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Join Date: Dec 2018
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Hardship withdraw into HSA?

Hi, new here.

I took a hardship withdraw from my 401k to payoff some medical expenses. The service provider settled for a lesser amount than what the total expenses were, resulting in having some left from the withdraw. The managing firm for my employers 401k plan and my head of HR both stated I can use the remainder to pay off other medical expenses (and only medical expenses which I already assumed). My question is can I deposit the remaining balance into my HSA to avoid paying Federal Income Tax on the remaining balance, then pay the expenses with it? Of course this is assuming I haven't hit the maximum deposit limit, which I am sure I haven't and won't. If not I will use it to pay off some other medical expenses that are prior to opening the HSA and can't be paid out of the HSA. Any insight would be greatly appreciated.

Thanks,
Brent



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Old 12-07-2018, 02:30 AM
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Join Date: Oct 2010
Posts: 5,138
; although an HSA?s primary role is to serve as savings account to offset the cost of high-deductible health plans, you can deposit pre-tax dollars or deduct your contributions. While your 401k is tied to your employer, your HSA is not. As long as your health plan meets the deductible requirement and permits you to open an HAS.You can withdraw the funds tax-free at any time for qualified medical expenses.you need to contact your plan admin for more accurate info in detail



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