All of the following scenarios are exempt from the additional Health Savings Account (HSA) penalty except?

In the context of Health Savings Accounts (HSAs), certain scenarios allow for penalty-free withdrawals, while others do not. The additional penalty for early withdrawal from an HSA typically applies to distributions taken for purposes other than qualified medical expenses before the account holder reaches age 65, dies, or becomes disabled.

The correct choice highlights that an unemployed taxpayer who is 60 years old does not qualify for any special exemption regarding the additional penalty. Even though this individual has reached the age of 60, simply being unemployed does not exempt them from the penalty on early distributions if they withdraw funds for non-qualified medical expenses. Only specific circumstances such as reaching age 65, disability, or death allow for penalty-free access to HSA funds.

In contrast, the other scenarios present situations that are explicitly exempt from the additional penalty. A taxpayer who is 70 years old would generally be beyond the age threshold where penalties typically apply, allowing for penalty-free withdrawals. An individual who inherits the account upon the death of the original account holder can also access funds without penalties, as this is seen as a qualified distribution. Similarly, a disabled individual is eligible for penalty-free withdrawals regardless of age due to their disability status.