Can I Remove Money From HSA?

One common question people often have about HSAs is whether they can remove money from it. The short answer is yes, you can withdraw money from your HSA, but there are certain rules and guidelines you need to follow to avoid penalties or taxes.

When it comes to withdrawing funds from your HSA, it's essential to understand the rules surrounding eligible expenses. You can use the money in your HSA to pay for qualified medical expenses for yourself, your spouse, or your dependents. These expenses can include co-pays, deductibles, prescriptions, and other approved medical costs.

However, if you withdraw money from your HSA for non-qualified expenses before the age of 65, you may be subject to income tax on the amount withdrawn, as well as a 20% penalty. After the age of 65, you can still withdraw money for non-medical expenses without the penalty, but you will need to pay income tax on the amount.

It's important to keep detailed records of your HSA withdrawals and expenses to ensure you are using the funds appropriately. If you're unsure whether an expense is eligible, it's best to consult with a tax professional or financial advisor.

Absolutely, you can withdraw money from your HSA anytime, but it’s vital to keep the rules in check to avoid unnecessary penalties or taxes.