Distributions can be made from an HSA at any time once the HSA is
established. Distributions are limited to the amount of funds that are
available in the account and are used to pay for qualified medical
expenses incurred after the HSA is established. Funds may be distributed
for non-qualified medical expenses, but will be subject to income
tax and a 10% additional tax penalty.
Distributed Tax-Free
Distributed with Taxes and 10% Penalty
Qualified medical expenses
Non-qualified distributions requested by the participant
American Fidelity offers 3 options to make distributions easy:
HSA debit card,
Request distribution via the web, or
Through submission of the HSA Distribution
Request Form that can be mailed or faxed
