Money Saved Money Gone From Health Savings Account AARP Bulletin
Money Saved Money Gone From Health Savings Account - AARP Bulletin
But when Nestrud, 44, went to pay, her HSA debit card was declined. The couple learned their HSA accounts were frozen, and the money may be gone forever.
In March, the two cofounders of Canopy Financial, which managed the Nestruds’ accounts, were indicted for defrauding investors and “misappropriating” $19 million in HSA funds and flexible spending accounts. Canopy has filed for bankruptcy.
The Nestruds are among at least 1,600 health savings account holders who may be victims. “It’s very frustrating that there aren’t some better protections in place,” says Lon Nestrud, 45.
The trouble is that most bank regulations were established before HSAs existed, says Gail Hillebrand, senior attorney at . If you do go with an HSA, Hillebrand recommends asking in advance what will happen if your money is lost or stolen. Also, she says, look for accounts—known as “pass through”—that are insured individually by the . Michelle Diament is a frequent contributor to the AARP Bulletin. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures
Money Saved Money Gone From Health Savings Account
When Wendy Nestrud of Denver went for a dental cleaning last December, she didn’t give a second thought to paying for the exam. After all, she and her husband, Lon, had $2,000 in their health savings accounts (HSA), which allow individuals to set aside pretax dollars for medical expenses.But when Nestrud, 44, went to pay, her HSA debit card was declined. The couple learned their HSA accounts were frozen, and the money may be gone forever.
In March, the two cofounders of Canopy Financial, which managed the Nestruds’ accounts, were indicted for defrauding investors and “misappropriating” $19 million in HSA funds and flexible spending accounts. Canopy has filed for bankruptcy.
The Nestruds are among at least 1,600 health savings account holders who may be victims. “It’s very frustrating that there aren’t some better protections in place,” says Lon Nestrud, 45.
The trouble is that most bank regulations were established before HSAs existed, says Gail Hillebrand, senior attorney at . If you do go with an HSA, Hillebrand recommends asking in advance what will happen if your money is lost or stolen. Also, she says, look for accounts—known as “pass through”—that are insured individually by the . Michelle Diament is a frequent contributor to the AARP Bulletin. Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures