Health Savings Accounts withdrawals for eligible health expenses are tax-free at the federal level. Each state establishes their own guidelines regarding the tax treatment of HSA withdrawals. Check with your tax professional to find out if HSA withdrawals are considered taxable income in your state.
The following states follow the tax treatment established by the federal government:
The following states are not subject to state income tax:
The following states do not provide tax benefits for HSAs at the state level:
Please visit your state tax resource or consult a qualified tax adviser for more information.
Have a qualified expert in Consumer Driven Health Plans explain your options. Click on the appropriate link below.
