Can an employee use their HSA for non-medical expenses?

In addition to being used for medical expenses, HSAs can also serve as investment or retirement accounts, as the account belongs to the employee. The funds in an HSA can be used for general non-medical purposes, without penalty, once the employee reaches age 65. Any withdrawn funds used for non-medical purposes are still subject to […]

2018 HSA contribution limit

In addition to being used for medical expenses, HSAs can also serve as investment or retirement accounts, as the account belongs to the employee.

The funds in an HSA can be used for general non-medical purposes, without penalty, once the employee reaches age 65. Any withdrawn funds used for non-medical purposes are still subject to income taxes.

If HSA funds are withdrawn for non-medical use before age 65, some penalties apply:
funds withdrawn early lose their tax-exempt status and are subject to income taxes. Also, there is an additional 20% tax penalty for early non-medical withdrawals.

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