Thanks for the quick reply; only, I was looking for a math formula beyond the 20% constant and description. I think what I'm asking is how to *calculate* the final number I'm looking for. I understand that I will have a tax liability added to my gross annual income but I don't know whether that will be based on the total number I withdraw or the total number I receive. If, for example, my HSA had $5,000 in it, my 20% penalty would be $1,000 and I would receive $4,000. In February, when I'm filing, would I end up reporting $4,000 in additional income or $5,000 in additional income?
