Debit Card. payments and distributions of funds from this HSA may be made upon the direction of the Accountholder. Distributions from this HSA that are used exclusively to pay or reimburse qualified medical expenses of the Accountholder, his or her spouse, or dependents are tax free. However, distributions that are not used for qualified medical expenses are included in the Accountholder’s gross income and are subject to an additional twenty percent (20%) tax on that amount. The additional twenty percent (20%) tax does not apply if the distribution is made after the Accountholder’s death, disability, or reaching age sixty-five (65). The Custodian is not required to determine whether the distribution is for the payment or reimbursement of qualified medical expenses. Only the Accountholder is responsible for substantiating that the distribution is for qualified medical expenses and must maintain records sufficient to show, if required, that the distribution is tax free.
Appears in 5 contracts
Samples: Custodial Agreement, Custodial Agreement and Disclosure Statement, Custodial Agreement and Disclosure Statement
