USA Better off paying HSA penalties?


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Nov 9, 2015
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I am posting this theoretical scenario, hoping to see what you guys think.

Say I have a high paying job, I am paid more than I deserve, so much so, I will be laid off soon and become jobless for many years to come.

If I contribute to the maximum, now through the time I get laid off, to my HSA (health saving account), the contribution is pre-tax. I save 25% in my income tax on that contribution.

Now I am laid off, jobless, not a dime of income. I live frugally. I take money out of my HSA. I pay a 20% penalty, and income tax - but wait, I am jobless, income-less, I am at the 0% (or near 0%) tax bracket. Net: I pocket the 5%.

Did I just discover a loop hole?
 
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