Question: India ( 6 0 ) contributed to an HSA before she retired and still has funds available. If she uses $ 1 , 5 0

India (60) contributed to an HSA before she retired and still has funds available. If she uses $1,500 of her HSA funds to pay for a shopping spree, what is the federal tax consequenc
No tax, and no penalty.
Ordinary income tax, but no penally.
Ordinary income tax, and a 20% penally.
No tax, but a 20% penally.
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