Z3Dreamer
Thinks s/he gets paid by the post
Lets say that I put $6,000 in my HSA. Lets say that on my tax return, I itemized and had $10,000 in medical. Due to my AGI, I could only deduct $4,000. Beginning of the next year, I want to pull some out of my HSA. Based on this one year, what can I pull out without penalty or tax?
The IRS says I can pull out medical expenses as long as "the medical expenses have not been taken as an itemized deduction". DW says this means we can take none out as we used all $10,000 to get to the $4,000 deduction. I say that we only deducted $4,000 and therefore can pull out up to $6,000.
We are both retired CPAs but no longer have access to CCH, PH or RIA. Anyone have a citation?
The HSA administrator's useless phone support quickly said $6,000, but I don't think they understood the question.
The IRS says I can pull out medical expenses as long as "the medical expenses have not been taken as an itemized deduction". DW says this means we can take none out as we used all $10,000 to get to the $4,000 deduction. I say that we only deducted $4,000 and therefore can pull out up to $6,000.
We are both retired CPAs but no longer have access to CCH, PH or RIA. Anyone have a citation?
The HSA administrator's useless phone support quickly said $6,000, but I don't think they understood the question.