Can HSA be Used for Anything After Age 65?

One common question many individuals have about Health Savings Accounts (HSAs) is whether they can be used for anything after turning 65. The short answer is yes, once you reach age 65 and enroll in Medicare, you can continue to use your HSA funds for eligible medical expenses, as well as for non-medical expenses without penalty.

Here are some key points to keep in mind:

• After age 65, you can withdraw HSA funds for any reason without penalty, although income tax will still apply if the funds are used for non-qualified expenses.
• You can use HSA funds tax-free for eligible medical expenses, including deductibles, copayments, prescription drugs, and some over-the-counter items.
• Once enrolled in Medicare, you can use your HSA to pay for premiums, deductibles, copayments, and coinsurance for Medicare Part A, Part B, and Part D.
• If you continue to work past age 65 and have employer-provided health coverage, you can delay enrolling in Medicare, and still contribute to your HSA.

When you turn 65 and enroll in Medicare, your Health Savings Account (HSA) becomes even more versatile. You can utilize your HSA funds for eligible medical expenses without worrying about penalties, and for non-medical expenses, you can withdraw funds without penalty, although you will still owe income tax on those amounts.