Can you withdraw money from an HSA?

Question

A Health Savings Account (HSA) can help eligible individuals save for qualified medical expenses using tax advantages. However, withdrawal rules and potential tax consequences depend on how the funds are used and the account holder's circumstances. What should people check before taking money out of an HSA?

Christina · Answer

Yes, and it’s tax free if you spend it on qualified medical costs. If you take it out for something else you’ll owe tax plus a penalty, so I only dip in when I really need to.

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