How does he treat the HSA contributions?
An employer would treat the HSA contributions as any other pre-tax business expense. For example, the same way the employer treats the contribution to the health insurance plan. How are expenses verified to be qualified medical expenses? Are receipts required to be sent to insurance carriers? Are there audits? If I have a debit card linked to HSA funds, where does the burden of proof lay in the event of an audit, with the individual or with the third party debit card provider? The owner of the HSA account is responsible and accountable to the IRS, in the event of an audit. The insured, once their deductible is reached will provide the expenses to the insurer. The burden of proof lies with the owner of the HSA and not with the entity providing the debit card. I’m an agent and want to sell HSAs. Even though the insurance carriers in my state haven’t formally offered HSA plans, their plans meet the criteria. So it appears that I can sell “HSA” plans as long as the client is willing to set
