Carol-L
Level 3
12-07-2019
12:01 AM
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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
12-07-2019
12:01 AM
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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,
The more I know the more I don’t know.
Carol-L
Level 3
12-07-2019
12:01 AM
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Thank you.