Will The Distribution From My HSA Be Tax And Penalty-Free?
An HSA account is one of the most tax-efficient savings accounts available to investors. While many of the distribution rules are straightforward, there are several factors and exceptions that should be considered before you take a distribution from their HSA, including:
Classification as a Qualified Medical Expense
Eligibility of LTC insurance premium payments
Eligibility of health insurance premium payments
Impact if the distribution occurs before/after turning age 65
Use of HSA funds to pay Qualified Medical Expenses of family members
Timing of expenses
Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.