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 »  Funds Distribution  

How are funds distributed from a Health Savings Account?

Distributions can be made from an HSA at any time once the HSA is established. Distributions are limited to the amount of funds that are available in the account and are used to pay for qualified medical expenses incurred after the HSA is established. Funds may be distributed for non-qualified medical expenses, but will be subject to income tax and penalities.

Distributed
Tax-Free
Distributed
with Taxes and 10% Penalty
Qualified medical expenses Non-qualified distributions requested by the participant

American Fidelity offers 3 options to make distributions easy:

  1. HSA debit card


  2. Request distribution via the web, and


  3. Through submission of the HSA Distribution Request Form that can be mailed or faxed

 
E-SB-200
© American Fidelity Assurance Company 2007-2008