Are HSA trustees and custodians also subject to the rules against prohibited transactions?
A-68. Yes. The same rules that apply to account beneficiaries apply to trustees and custodians.Q-69. If administration and account maintenance fees ( e.g., flat administrative fees) are withdrawn from the HSA, are the withdrawn amounts treated as taxable distributions to the account beneficiary?A-69. No. Amounts withdrawn from an HSA for administration and account maintenance fees will not be treated as a taxable distribution and will not be included in the account beneficiary’s gross income.
A-68. Yes. The same rules that apply to account beneficiaries apply to trustees and custodians. Q-69. If administration and account maintenance fees ( e.g., flat administrative fees) are withdrawn from the HSA, are the withdrawn amounts treated as taxable distributions to the account beneficiary? A-69. No. Amounts withdrawn from an HSA for administration and account maintenance fees will not be treated as a taxable distribution and will not be included in the account beneficiary’s gross income.
