BillM223
Employee Tax Expert

Deductions & credits

You can continue to use funds in the HSA to pay for qualified medical expenses even after you no longer have HDHP coverage - you can't contribute to the HSA any longer but you can still spend the money out of it, until its funds are exhausted.

 

You entered the 1099-SA, right? And as part of the 1099-SA interview, you said that all the funds were used for qualified medical expenses, right? Then, yes, this is not taxable.

 

NOTE: The IRS has never put a time limit on how long you can hold funds in the HSA yet withdraw money even years later for qualified medical expenses. It sounds like everything is working as expected.

 

 

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