Penalty of closing an HSA account.

[Enter the Race]

I have an HSA account from a Corporare job I had years ago, they take a fee every month because I don’t have enough money in it. When I called them years ago to close it they said there was a tax penalty for closing it. Can someone remind what the penalty is??

 

[Yagents]

Obama raised it to 20% penalty. May be lowered now to 10%. Or, transfer money to no fee HSA. Firstambank.com

 

[LostDollar]

If "years ago" has brought you to 65 or older now, only income tax on the distribution, no penalties.

Edit: OK, I stand corrected. As yagents comments below, the 20% is an additional TAX imposed on the HRA distribution if it is not for qualified medical expenses and you are under 65.

 

[Yagents]

What about taxes LD? Super agent