Answer:
The custodian will report distributions to the IRS. It is up to the taxpayer to prove to the IRS if they were taxable or non-taxable withdrawals. The custodian is not the HSA police.
The custodian will report distributions to the IRS. It is up to the taxpayer to prove to the IRS if they were taxable or non-taxable withdrawals. The custodian is not the HSA police.