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Retirement tax questions
The answer is YES.
The HSA is not a savings account that you can willy-nilly put money in and take money out of. You are expected to take money out only for medical expenses, and you will pay a pretty penny (well, 20%) if you take money out for any other reason.
Your HSA custodian will send you a 1099-SA for the withdrawal in February, and your entry of this form will trigger the penalty. The contribution in July will have nothing to do with the withdrawal in February.
It seems from this and your other post that you are trying to borrow some money from your HSA. Your HSA is not designed for that. Look someplace else.
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March 28, 2023
8:35 PM
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