What Are the Exceptions to the 50% Medicare Advantage MSA Tax?

In some cases, the additional 50% tax on a Medicare Advantage Medical Savings Account (MSA) distribution doesn't apply.

You won't owe the extra 50% tax on distributions made on or after the date the account holder:

If either of these situations applies, the distribution is exempt from the additional tax penalty. Keep any records that support the account holder's date of death or disability status in case the IRS requests documentation.