Can I Take Money Out of an HSA Once I am 65?

Yes, you can take money out of an HSA (Health Savings Account) once you turn 65. At this age, you can withdraw funds from your HSA for any reason without penalty, similar to a traditional IRA.

HSAs offer tax benefits and flexibility in saving for medical expenses, making them a valuable tool for retirement planning. Here are some key points to consider:

• Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free.
• After age 65, you can withdraw funds for any reason, not just medical expenses. However, if the funds are used for non-medical expenses, they will be subject to income tax but not penalty.
• There are no required minimum distributions (RMDs) for HSAs, unlike traditional retirement accounts like IRAs or 401(k)s.
• HSAs can be a way to save additional funds for healthcare costs in retirement, especially as healthcare expenses tend to increase with age.

Having an HSA can provide a valuable safety net for healthcare expenses in retirement and give you more control over your funds. It's important to understand the rules and benefits of an HSA for your financial planning.

Yes, once you turn 65, you can freely withdraw money from your Health Savings Account (HSA). This allows for complete flexibility in how you use your funds, similar to the way you would access money in a traditional IRA.