Yes, you can cash out your HSA anytime; however, there may be penalties. Distributions for non-medical expenses are taxable and will incur a 20% penalty. So, if you withdraw $10,00 from an HSA, you’ll get hit with a $2,000 penalty plus income tax. There’s an exception for those 65 or older. At age 65, you can take penalty-free distributions from your HSA. Non-medical withdrawals at this age will still count as income, though.