@Matyon267 wrote:
Hello Opus,
If I withdrew my entire account (contributions plus earning) do I report all of that to be taxed 20 percent withdraw fee. Or can earnings be withdrawn without a fee and only charged on the contributions made?
If you withdraw the entire account, any amount used for medical expenses will be tax free and penalty free. Any amount not used for medical expenses will be subject to income tax plus a 20% penalty. Then, at the end of the year, you will not be assessed any future 6% penalty, because that penalty is based on the excess contributions or remaining balance, whichever is lower.
