Tennessee Code Title 67. Taxes and Licenses § 67-10-105

(a) Notwithstanding subsections (c), (d), (e), or (f), an eligible individual may withdraw money from the individual's health savings account for any purpose other than a purpose described in § 67-10-104.

(b) Subject to subsection (c), if the eligible individual withdraws money for any purpose other than a purpose described in § 67-10-104 at any other time, then such amounts shall be treated as otherwise provided by applicable law.

(c) The amount of disbursement of any assets of a health savings account pursuant to a filing for bankruptcy protection under title 11 of the United States Code (11 U.S.C. § 101 et seq.), by an eligible individual or person for whose benefit the account was established is not considered a withdrawal for purposes of this section. The amount of a disbursement is not subject to taxation under chapter 2 of this title.

(d) The transfer of an eligible individual's interest in a health savings account to an eligible individual's spouse or former spouse under a divorce or separation instrument shall not be considered a taxable transfer made by the eligible individual, notwithstanding any other provision of this chapter, and the interest shall, after the transfer, be treated as a health savings account with respect to which the spouse is the eligible individual.

(e) Upon the death of the eligible individual, the trustee or custodian shall distribute the principal and accumulated interest of the health savings account to the estate of the deceased.

(f) If an employee becomes employed with a different employer that participates in a health savings account program, the employee may transfer the employee's health savings account to that new employer's trustee or custodian, or to an individually purchased account program.