yes; the custodian will report the distribution to the IRS. But neither the custodian nor the IRS know if you used it to pay for qualified medical expenses or to bet on the horses. This reporting on your return (8889) is to clarify that to the IRS so they don't assess you taxes on the amount distributed. The custodian doesn't care.
Statistics: Posted by jebmke — Sat Sep 27, 2025 3:28 pm — Replies 2 — Views 90