Can I Cash Out My HSA Account After Age 65?

If you have a Health Savings Account (HSA), you may be wondering what happens to your account once you reach the age of 65. HSAs are a fantastic tool for saving money for medical expenses, but many people are unsure of the rules regarding accessing their funds in retirement. So, can you cash out your HSA account after age 65? Let’s dive in and find out!

After you turn 65, you can use your HSA funds for any reason, not just medical expenses. While you can still use the money tax-free for qualified medical costs, you can also withdraw the funds for any purpose without penalty. However, if you withdraw the money for non-medical expenses, you will need to pay income tax on the amount, much like a traditional IRA or 401(k).

It's essential to understand that even after turning 65, using your HSA funds for medical expenses still provides significant tax advantages. If you use the money for qualified medical costs, the withdrawals remain tax-free.

Once you reach the milestone age of 65, your Health Savings Account (HSA) transforms from a focused savings tool into a versatile resource for your financial needs. You might be relieved to know that you can now utilize your HSA funds not just for medical expenses, but for any purpose you desire!