Distributions from an HSA used exclusively to pay for qualified medical expenses are excludable from gross income and not taxed.
Any distribution not used to pay for qualified medical expenses must be reported when filing taxes. The account beneficiary and is subject to an additional 10 percent tax*.
Individuals should consult with their HSA administrator, or a CPA before taking a questionable distribution.
*Except in the case of distributions made after the account beneficiary's death, disability, or attaining age 65.
What is an HSA?
Why an HSA?
Who is eligible for an HSA?
Is an HSA right for everyone?
Do I need a certain type of Insurance Plan?
Do I need a certain type of account?
Employer Benefits of HSA Plans
Employee Benefits of HSA Plans
HSA Tax Treatment
Tax Treatment: Inviduals
Tax Treatment: Employer Contributions
How are Distributions Taxed?
Who May Contribute?
How much may be contributed to an HSA in calendar year 2010?
Tax Treatment of Contributions
What are catch up Contributions?
What are “Qualified Medical Expenses?”
Are health insurance premiums qualified medical expenses?
How are claims adjudicated and processed?
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