S-corp and HSA

May 24, 2023 Last reply: 3 years ago 2 Replies

OP has an S-corporation. He gets health insurance through the marketplace. Every year he reports his gross income to determine the level of subsidy he receives.



Now he wants to withdraw money from the corporation's accumulated adjustments account, and wonders whether he has to report that as additional income. My guess is not, because he's already reported it in the past years when that money was accumulated.



Am I missing something?



Thanks for any insight.


Based on the facts presented, your assumption is correct. There might only be an issue if the distribution exceeded the AAA balance.

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