HSA Penalty Tax

Effective January 1, 2011, withdrawals from HSAs not used for qualified medical expenses will be subject to a 20% excise tax, which is an increase from 10% under prior law.

Neither American Fidelity Assurance Company nor American Fidelity Administrative Services provides tax or legal advice and, given the complexity of these laws, we always recommend working with your legal counsel on how the laws impact your specific situation.