What should you do with your HSA after age 65?
If you remain enrolled in the Qualified High Deductible Health Plan, you continue to use the HSA exactly as you did in the past. One added benefit to turning 65 would be that you can use the funds in the account for anything you want! The penalty for a non-qualified expense is no longer applicable. When you choose to use the funds for a non-qualified expense, you simply claim that amount on your taxes at the end of the year as other income. If you chose to only use the funds for Qualified Medical, Dental and Vision expenses for yourself and your tax dependents the funds are still tax free. Once you become enrolled in Medicare, you are no longer eligible to make contributions into the HSA. You are still allowed to use the funds in any way that you see fit. Remember, if you use the funds for anything other than a qualified expense, the funds are taxable as income.
This blog article is for informational purposes only, and is not an advertisement for a product or service. The accuracy and completeness is not guaranteed and does not constitute legal or tax advice. Please consult with your own tax, legal, and financial advisors.