So long as it is used for qualified medical expenses, it will be tax-free (keep your receipts). If you are below 65 and you take a distribution for anything other than a qualified medical expense, you have to pay a 20% penalty and ordinary income taxes on that amount. If you are 65 or older, you don’t pay the penalty, but you will have to pay income taxes on it.
Articles in this section
- What is an HSA?
- How Does an HSA Work?
- What are the benefits of an HSA?
- What are the requirements of an HSA? Am I eligible?
- What designates a qualifying High Deductible Health Plan?
- Do I have to get an HSA if I am on a High Deductible Health Plan?
- How does money get into my HSA account?
- How can I get an HSA?
- If I have a family, can I still have an HSA?
- Can I have a joint-HSA with my spouse?