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 your 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
Flowchart: Will The Distribution From My HSA Be Tax & Penalty-Free'
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