What happens to my HSA when I die?

Upon the death of an HSA account holder, any amounts remaining transfer to the designated beneficiary. If the beneficiary is the surviving spouse, then the spouse becomes the account holder of the HSA and the transfer is not taxable. Any withdrawals that are used for non-eligible medical expenses are subject to income tax. If the beneficiary is not the spouse, then the HSA ceases to be an HSA and is subject to income tax.

To update your HSA beneficiary, follow these steps:

• Login to your online account.
• Click Manage My Reimbursement Account.
• Select your HSA under My Accounts.
• Click View Beneficiaries and add your primary and contingent beneficiaries.

Note: When adding beneficiaries, you must allocate the percentage for each person and it must total 100%. Your beneficiary update will not be effective until you complete the allocation.