Yes, I have an "after tax"HSA in which I make contributions at my local bank. I get my paycheck and then I manually contribute to my HSA. I also have a pretax HSA with my work. I understand the difference.
So, it would make no sense to be taxed on the amount withdrawn as income since it was after tax contribution. I'm not certain if the 20% penalty would apply still.
I know its a different scenario than most people have. Perhaps when I started my HSA at my local bank about 7 years ago, you could contribute after tax money.
