Can You Have an HSA If You Are Over 65? - Understanding Health Savings Accounts

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare costs, but many people wonder if they can still have an HSA if they are over 65 years old. The answer is yes – you can have an HSA even if you are over 65, but there are some factors to consider.

One of the main requirements for having an HSA is being enrolled in a high-deductible health plan (HDHP). Once you enroll in Medicare, you are no longer eligible to contribute to an HSA. However, if you are still working and covered by an HDHP, you can continue to contribute to your HSA.

Here are some important points to know about having an HSA if you are over 65:

• If you are over 65 and no longer working, you can still use the funds in your HSA for qualified medical expenses tax-free.
• Once you turn 65, you can also use the funds in your HSA for non-medical expenses without penalty, although you will pay income tax on the amount withdrawn.
• It's important to keep track of your HSA contributions and withdrawals to ensure you are using the funds appropriately.

Many people are surprised to learn that Health Savings Accounts (HSAs) can still be beneficial for those over 65. If you find yourself in this age group and want to maximize your healthcare savings, it’s crucial to understand the nuances of HSAs.