Distributions

Distribution Details:

Tax-free distributions for:
- Qualified medical expenses
- Long-term care insurance and services
- COBRA coverage
- Medicare expenses (not Medigap)
- Retiree health expenses for ages 65 and older
Upon the account holder's death, the assets in the HSA become the property of their named beneficiary.
- If there is no beneficiary named, the assets go to the account holder's estate.
- If the beneficiary is a spouse, the HSA may be treated as their own account.
- If the beneficiary is a non-spouse, the HSA must be treated as ordinary income for taxation purposes.