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On my HSA, I did not use funds for qualified medical expenses, is that considered prohibited transaction under the Distribution Code?
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On my HSA, I did not use funds for qualified medical expenses, is that considered prohibited transaction under the Distribution Code?
No, this is not a prohibited transaction. It's a normal distribution subject to tax and, if under age 65, subject to penalty.
Prohibited transactions are those that disqualify the HSA from being an HSA, such as pledging the HSA assets as collateral for a loan.
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