When is an individual subject to the 20 percent premature distribution penalty tax?

Generally, if an HSA distribution is included in the HSA accountholder’s gross income because the funds were not used to pay for qualified medical expenses, the amount of that withdrawal will also be subject to an additional 20 percent penalty tax. This 20 percent penalty tax does not apply to distributions made after the HSA accountholder’s death, disability or attainment of age 65.

Introducing UMB HSA Saver

UMB HSA Saver is a unique investment platform designed with ease in mind. Account holders can easily research, buy and sell funds with a couple clicks.

How to Use ReceiptVault

HSAs are available to help pay for current qualified medical expenses as well as to save for future expenses, all in a tax-exempt account.

HSA FAQ Resource

Find answers to your most common HSA questions in our comprehensive HSA FAQs section.