Let me say that I know just enough about HSAs to be dangerous! A CPA I work with has a client that called and explained that they, the employee, loaned their HSA money to pay for a medical procedure. The employee had this medical procedure, paid the medical bills with the HSA, and intends to withdraw the original "loan" amount when enough employer contributions are deposited into the HSA...is this possible????

The employer is allowed to accelerate contributions to an employee who has a qualified expense and not enough money accumulated in their HSA. If the employer does this, they must make it available to all other ee's during that calender year. Keep in mind, HSA monies deposited in the ee's HSA account is 100% vested to the ee. If the er and ee do what they say the are doing, it will leave a paper trail of the "loan" and the repayment.

I saw discussions where the employer could pre-fund the contributions and I understood that- but the employee??? That's what's throwing me.