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New Member
posted Feb 20, 2023 12:16:39 PM

Age of Distribution for my HSA Account. I turned 65 in 2022, so how do I answer the question if I was 65 or older when I received the distribution?

How do I answer this question? Yes I was 65 for some of the distribution. No I was not 65 for other parts of the distribution during the year.

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Level 15
Feb 20, 2023 12:36:25 PM

TurboTax only needs to know your age at the time of the of the distribution if the distribution was a taxable distribution.  Distributions that are not for payment of qualified medical expects are subject to income tax and, if you are under age 65 at the time of the distribution, to a 20% extra tax.  If the distributions were not used for any qualified medical expenses you'll need to split the Form 1099-SA into two, one for the portion received before age 65 (subject to the extra tax) and the other for the portion received after age 65 (not subject to the extra tax).

 

If you used all of the money for qualified medical expenses, it doesn't matter what answer you give since nontaxable distributions are not subject to a 20% extra tax.