USS_Notajetski t1_j6perz2 wrote on January 31, 2023 at 11:23 PM

It is my understanding that withdrawing cash is taxable.

You need to use it for qualifying medical purposes.

PichaelSmith t1_j6pfdxx wrote on January 31, 2023 at 11:27 PM

If they pay it another way there isn’t any reason they can’t then submit for reimbursement and then the HSA will send them the cash and it wouldn’t be taxable since they are being reimbursed for a Dr bill. I do it all the time, pay medical bills with a cash back credit card and then submit to have myself reimbursed.

USS_Notajetski t1_j6pgvje wrote on January 31, 2023 at 11:37 PM

I stand corrected. I was unaware of that which means I have been losing out of cash back/points. Thank you.