When can an HSA accountholder take distributions from an HSA?

An HSA accountholder can take a distribution (withdraw funds) from their HSA at any time. Distributions from an HSA for the qualified medical expenses of the accountholder or their spouse or federal tax dependents are generally excludable from income for federal income tax purposes if such expenses are not covered by insurance. A transfer of funds from the HSA Deposit Account to another investment made available through UMB is not considered a “distribution,” and remains part of the individual’s HSA at UMB.