Can I Have an HSA Account After Age 65?

Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.

Keeping an HSA after age 65

Many people wonder if they can have an HSA account after reaching the age of 65. The answer is yes, you can still have an HSA account after the age of 65, but there are some important things to consider.

Yes, you can absolutely maintain an HSA account after you reach age 65, which offers a great flexibility in managing your healthcare expenses.

Medicare enrollment and contribution limits

Once you enroll in Medicare, you are no longer allowed to contribute to your HSA account. However, you can still use the funds in your HSA to pay for qualified medical expenses tax-free, even after the age of 65.

Tax treatment for qualified vs non-qualified

It's important to note that using HSA funds for non-medical expenses after the age of 65 will incur regular income tax, similar to a traditional IRA. Additionally, if you withdraw funds for non-qualified expenses before the age of 65, you may also incur a 20% penalty.

How HSA funds can help after 65

Having an HSA account after age 65 can still be beneficial for covering medical expenses not covered by Medicare, such as vision and dental care, long-term care, and Medicare premiums. It can also serve as a valuable retirement savings tool.