Tax Treatment of HSAs*

What is the tax treatment of earnings on amounts in an HSA?

Earnings on amounts in an HSA are not taxable prior to distribution from the HSA. However, HSAs are subject to the taxes imposed by Section 511 of the Code (relating to tax on unrelated business income of charitable, etc., organizations). In addition, under certain circumstances, distributions from an HSA may have tax consequences (see the following section regarding taxation of distributions).

Will your custodian provide any tax advice in connection with your HSA?

As custodian, UMB will provide no tax advice concerning your HSA. The tax consequences of your HSA, including all contributions to and distributions from your HSA, are your sole responsibility. You are encouraged to discuss any questions with your own tax adviser.


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You’ll hear from HSA experts who will cover key topics that your clients and other HSA account holders probably don’t understand and discuss several lesser-known strategies to help them take their HSA game to the next level.‡

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