Hello, for an HSA, with Equity Trust, there is no debit card capability. However, HSA rules allow a reimbursement which means you pay for the expense then request a distribution check to you personally to reimburse.
Another UA-camr suggested they plan on growing the HSA, then taking withdrawals as retirement income (not medical). While I would think they would pay taxes on it (like a Traditional IRA), would they also be slapped with some kind of penalty?
Hi Tom, If you are over the age of 65, you can withdraw funds from your HSA for non-medical expenses and you won’t be penalized, however taxes are applied. If you are under the age of 65 and withdraw funds from your HSA for non-medical expenses, you will be both penalized and taxed.
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0:14 Self Directed HSA
0:29 Health Care Plan
6:22 Triple Tax Benefit
7:02
John, what does your company use to facilitate paying medical expenses? a debit card, checks? would I need to submit a claim?
Hello, for an HSA, with Equity Trust, there is no debit card capability. However, HSA rules allow a reimbursement which means you pay for the expense then request a distribution check to you personally to reimburse.
What happens if you die with an HSA balance? Could I pass it tax free to my heirs through a trust in a similar manner as my Roth account?
Another UA-camr suggested they plan on growing the HSA, then taking withdrawals as retirement income (not medical). While I would think they would pay taxes on it (like a Traditional IRA), would they also be slapped with some kind of penalty?
Hi Tom,
If you are over the age of 65, you can withdraw funds from your HSA for non-medical expenses and you won’t be penalized, however taxes are applied. If you are under the age of 65 and withdraw funds from your HSA for non-medical expenses, you will be both penalized and taxed.