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Are HSA distributions taxable if client no longer has HDHP? Contrib 2017 when client had HDHP. Laid off. No med ins in 2018. Are 2018 expenses "Qualified"?

Carol-L
Level 3

Are HSA distributions taxable after client no longer has HDHP?  Contributions were made in 2017 when client had HDHP.  Laid off Dec  2017.  Unable to maintain medical ins in 2018.  Used distributions to pay 2018 medical expenses. Are 2018 Medical expenses "Qualified"?  

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sjrcpa
Level 15

Distributions from the HSA that are used for medical expenses are not taxable. It doesn't matter if you still have the HDHP that enabled you to contribute to the HSA,


Ex-AllStar

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2 Comments 2
sjrcpa
Level 15

Distributions from the HSA that are used for medical expenses are not taxable. It doesn't matter if you still have the HDHP that enabled you to contribute to the HSA,


Ex-AllStar
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Carol-L
Level 3
Thank you.  
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