I have an HSA account from my previous employer. I have depleted the majority of the funds except for $200 to help cash flow the birth of my child.

Now that the account is only $200, the bank has started charging a monthly 1.50 maintenance fee because it is below the minimum balance threshold of $1000 to have no fees.

This has gotten me wondering about my taxes for this year and whether I will need to report these fees as non-qualifying expenses and pay taxes on them? I tried to google for an answer, but couldn't really find any definite answers.

2 Answers 2



From the Internal Revenue Service Publication 969:

HSA administration and maintenance fees withdrawn by the trustee aren’t reported as distributions from the HSA.

Just prior to that, it explains how distributions must be listed on Form 8889 and designated as either qualified medical expenses or not. So not having to list as a distribution means that you don't have to pay taxes on fees withdrawn by the trustee.

You do have to pay taxes if you pay the fees separately from funds outside the Health Savings Account. Fees are not themselves deductible. Only the trustee can withdraw them from the account without tax consequences.


HSA fees that are taken from the HSA account are not deductible. It reduces the value of the account.

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