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Retirement tax questions
Yes, this was a taxable distribution. If the HSA custodian had transferred the money into an investment, then it would not have been taxable. But in this case, the funds flowed through you, which makes it taxable.
Return the funds to the HSA account as soon as possible. There are penalties that accrue for the entire time the funds are not in your HSA account.
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‎January 29, 2024
11:59 AM