Answer: no tax penalty can be apply in this case.
Explanation:
Medicare is available for people age 65 or older .
If Marilyn is eligible to receive Medicare.
For a taxable HSA distribution, there is no tax penalty if a person aged more than 65 years receives a taxable HSA distribution.
So if Marilyn is eligible to receive Medicare, w assume that her age is more than 65.
Hence, no tax penalty can be apply in this case.
