Hello,
Can the source for bullet two be sited please. After reading P969 I am not seeing this stated anywhere under excess contributions. Also, if true, this doesn't seem to be a universal rule if the individual is no longer eligible at the time the excess contribution occurred.
- You can take qualified withdrawals (for medical expenses) that take your HSA balance to $0. The penalty is assessed on the lower of your excess contribution or your HSA balance at the end of the tax year. By drawing the account down to $0, you will have no more penalty assessed.
