Can You Contribute to HSA at 62 Years Old? - Understanding Your Options

If you are 62 years old and considering contributing to an HSA (Health Savings Account), you'll be glad to know that yes, you can still contribute to an HSA at 62 years old. HSAs offer a great way to save for medical expenses while enjoying tax benefits. Here are some key points to keep in mind:

1. Eligibility requirements: Even at 62 years old, you can contribute to an HSA as long as you are enrolled in a high-deductible health plan (HDHP) and not enrolled in Medicare.

2. Contribution limits: For individuals, the 2021 contribution limit is $3,600, and for those 55 and older, there is an additional catch-up contribution of $1,000, bringing the total to $4,600.

3. Tax benefits: Contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.

4. Retirement savings: HSAs can also serve as a supplemental retirement savings vehicle, as they can be used for non-medical expenses penalty-free after age 65 (though taxes apply if used for non-medical purposes).

5. Employers and contributions: If your employer offers contributions to your HSA, those contributions are also tax-free, providing an added incentive to save for future medical expenses.

Overall, contributing to an HSA at 62 years old can be a smart financial move to help cover medical costs in retirement. Consult with a financial advisor to determine the best strategy based on your individual circumstances.

If you're 62 years old and contemplating your financial future, you can indeed make contributions to an HSA (Health Savings Account). This investment in your health can provide not only a reservoir for your medical expenses but also tax advantages that can benefit you both now and in retirement.