You can receive tax-free distributions from your HSA to pay for qualified medical expenses you incur after you establish the HSA. See IRS publication 502 for explanation of QMEs.
If you take distributions for something other than qualified medical expenses, the amount you withdraw will be subject to income tax and may be subject to an additional 20% penalty.
There is no penalty on distributions made after the date you are disabled or reach age 65.
You may take distributions to pay for qualified medical expenses at any time. (There are not required minimum distributions.)
Reimbursements for QMEs do not need to be taken in the same year as the QME occurred. QME reimbursements can occur at any point in the future as long as the specific QME being reimbursed was not included on a previous years Schedule A.
Distributions for QMEs can be taken for up to one year after the death of the account holder.
Qualified medical expenses are those incurred by the following persons:
You and your spouse.
All dependents you claim on your tax return.
Any person you could have claimed as a dependent on your return except that:
The person filed a joint return,
The person had gross income of $3,800 or more, or
You, or your spouse if filing jointly, could be claimed as a dependent on someone else's previous year return.