This change only impacts select Forma members. All members impacted will be notified directly via email about account changes. If you have not been notified, then this change does not impact your account.
You should consult with your tax advisor given your specific circumstances.
Amounts distributed from an HSA that are not used to offset qualified medical expenses or rolled into another HSA are subject to taxation and, in many cases, an additional 20% penalty.
If you close your HSA as part of the migration, Forma will issue you a physical check for your remaining balance.
In order to complete an HSA rollover, you will need to deposit funds from your Forma HSA into a new HSA within 60 days of receiving the check.
At the end of the year, Forma will provide you Form 1099-SA detailing HSA distributions for the year.
When you file your income taxes, you will use the information from the 1099-SA to complete Form 8889 and determine whether any tax or penalty applies. Again, in order to maintain the tax-favored status of HSA funds, you should roll the distributed funds into another HSA within 60 days of receipt or use the distributed funds to offset eligible incurred medical expenses.