Was there a change to HSA taxes?

1,286 Views | 7 Replies | Last: 1 yr ago by permabull
jamey
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AG
Guy at work was told by H&R block that any money not used in HSA for a given year is taxed?

I thought it was pretax and stayed that way as long as it's used for medical purposes and you could invest all unused monies

So we've been maxing it out last year and planned to do the same this year and spend none of it, and invest it in the market for decades to come

My wife has an illness so we'll need it eventually in all likelihood
Pinochet
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Either the guy at work misinterpreted or more likely, H&R Block guy doesn't know what he's talking about.
BenTheGoodAg
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AG
Lolwut. False.
TriAg2010
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AG
Maybe got confused with an FSA (use it or lose it) while also being wrong on the tax treatment.
P.H. Dexippus
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AG

Truth in advertising
akaggie05
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AG
H&R Block is one level above hiring high school dropouts to give tax advice. Just saying.
cjsag94
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AG
Only possible explanation I could think would be that they are saying any distributions without medical expenses would be taxed.. other than that, wow... That is wrong info.

Is your friend over 65 and looking to withdraw?
permabull
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AG
Most likely he misunderstood what the tax guy said...

If you spend the HSA money on something that isn't health related that will be taxed (and penalized if under 65), but no tax for leaving it there.
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