Can I Withdraw Funds from an Old HSA?

Are you wondering if you can withdraw funds from an old HSA? The answer is yes, you can still access the money in your Health Savings Account (HSA), even if you no longer contribute to it. HSAs are portable, meaning the funds are yours to keep and use for qualified medical expenses as needed. Here's what you need to know about withdrawing funds from an old HSA:

It's important to understand the rules and regulations governing HSA withdrawals:

• Qualified medical expenses: You can use the funds for a wide range of medical expenses, including doctor visits, prescription medications, and certain medical supplies. Make sure your expenses qualify to avoid penalties.
• Age 65: Once you turn 65, you can withdraw funds from your HSA for any reason without penalties. However, if you use the funds for non-medical expenses, you will owe income tax on the amount withdrawn.
• Retirement: If you retire before age 65, you can still use the HSA funds for qualified medical expenses without penalties. After age 65, you can use the funds for non-medical expenses penalty-free, though you'll need to pay income tax on the withdrawals.
• Transfer to an IRA: If you no longer have a high-deductible health plan, you can transfer the funds from your HSA to an Individual Retirement Account (IRA) to continue growing your savings tax-free.

Remember to keep records of your medical expenses and withdrawals for tax purposes. By understanding the rules and options for HSA withdrawals, you can make the most of your healthcare savings for years to come.

Yes, you can indeed withdraw funds from an old Health Savings Account (HSA), allowing you to access your savings even if you're not actively contributing. Since HSAs are portable, these funds remain available for your use on qualified medical expenses, regardless of your contribution status.