### Question
How does the law define qualified HSA distribution?


### Answer
Under *26 U.S.C. § 106*, **qualified HSA distribution** is defined as:

> a distribution from a health flexible spending arrangement or health reimbursement arrangement to the extent that such distribution—


(A) does not exceed the lesser of the balance in such arrangement on September 21, 2006, or as of the date of such distribution, and


(B) is contributed by the employer directly to the health savings account of the employee before January 1, 2012

#### Citation:
  - *26 U.S.C. § 106*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART III-ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME**

