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Yes. You can withdraw funds from your HSA anytime. But keep in mind that if you use HSA funds for any reason other than to pay for a qualified medical expense, those funds will be taxed as ordinary income, and the IRS will impose a 20% penalty.
Contributions made to your HSA by your employer may be excluded from your gross income. The contributions remain in your account until you use them. The earnings in the account arent taxed. Distributions used to pay for qualified medical expenses are tax-free.
An HSA distributionmoney spent from your HSA accountis nontaxable as long as its used to pay for qualified medical expenses. HSA distributions used for anything other than qualified medical expenses are not only taxable, theyre subject to an additional 20% penalty if youre not disabled or are under the age of 65.
The HSA money you take out will be added back to your gross income. Meaning youll owe taxes. Lets say your tax rate is 20% and you withdraw $1,000 for that new TV - youll also have to pay back $200 in taxes! On top of the taxes above, theres another 20% penalty for non-qualified withdrawals.
If you (or your spouse, if filing jointly) received HSA distributions in 2023, you must file Form 8889 with Form 1040, Form 1040-SR, or Form 1040-NR, even if you have no taxable income or any other reason for filing Form 1040, Form 1040-SR, or Form 1040-NR.

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Any HSA withdrawal you make without a qualified medical expense will be subject to income taxes. In addition to the income tax, youll have to pay an additional 20% tax on the withdrawal.

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