I have a new HSA, and I'm not sure how it works, it was established by my employer, and it says you can take money out, but if it isn't qualified you have to pay a penality tax, and how much, please don't answer if you don't know.
2007-04-23 05:10:54 · 1 answers · asked by francinebars 2 in Business & Finance ➔ Taxes ➔ United States
Hello, francine! Any HSA distributions that are not used for qualified medical expenses are subject to regular income tax as well as an additional 10% tax as withdrawal penalty. You would use Form 8889 to report the distribution and calculate how much (if any) is taxable.
Click the link below for details. Good luck! :-)
2007-04-23 05:19:03 · answer #1 · answered by Anonymous · 1⤊ 0⤋
The amount withdrawn is subject to regular income tax, and a 10% penalty. See pages 6 and 7 of http://www.irs.gov/pub/irs-pdf/p969.pdf
2007-04-23 05:20:38 · answer #2 · answered by Judy 7 · 1⤊ 1⤋