Alex, age 24, had an HSA account set up with her employer, Target, that had $5,000 in the account at the end of the year. She then quit her job in July and withdrew the funds. She had no qualifying medical expenses during 2022. Instead, she used the funds from the HSA to buy a used car she had wanted for a while. 

What is the tax consequence of this action?

Answer rating: 100% (QA)

Withdrawing funds from an HSA for nonmedical expenses incurs taxes and penalties In Al... View the full answer