Can an HSA Account be Closed After Age 65?

As you approach retirement age, you may be wondering about the future of your Health Savings Account (HSA). One common question that arises is whether an HSA account can be closed after age 65.

The short answer is yes, you can close your HSA account after age 65. However, there are a few important things to consider before making this decision:

• Once you enroll in Medicare, you can no longer contribute to your HSA account, but you can still use the funds already in the account for qualified medical expenses.
• If you close your HSA account after age 65 and withdraw funds for non-medical expenses, those withdrawals will be subject to income tax but not the 20% penalty that applies to withdrawals before age 65.
• If you have a high deductible health plan (HDHP) and are still working after age 65, you may choose to keep your HSA account open to continue saving for future medical expenses.
• Consult with a financial advisor or tax professional to evaluate your specific situation and ensure you make the best decision regarding your HSA account after age 65.

Ultimately, the decision to close your HSA account after age 65 will depend on your individual circumstances and financial goals. It's essential to weigh the pros and cons carefully before taking any action.

Many people nearing retirement often ask, Can I close my HSA account after turning 65? The answer is yes, but there are several factors to keep in mind.

When you enroll in Medicare, you lose the ability to add funds to your HSA. However, the good news is, you can still make use of the funds already saved for eligible medical expenses without any issues.

If you're considering closing your HSA account but want to withdraw funds for non-medical purposes, remember that while these withdrawals won't incur the typical 20% penalty associated with younger account holders, they will still be taxed as income.

It's important to note that if you still have a high deductible health plan (HDHP) and continue working post-65, keeping your HSA open can be advantageous for future health expenses.

Before making a decision, speaking with a financial advisor or tax professional can help you assess your unique situation and establish a thoughtful plan for your HSA after age 65.