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 RecepitVault

How to Use ReceiptVault

Easily track and manage your healthcare receipts using ReceiptVault.

HSA FAQ Resource

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