Can You Have an HSA While Retired?

Many people wonder if they can continue to have a Health Savings Account (HSA) even after they retire. The answer is yes, you can have an HSA while retired, as long as you meet certain requirements.

An HSA is a tax-advantaged savings account that allows you to save money for medical expenses. It offers several benefits, such as tax deductions on contributions, tax-free withdrawals for qualified medical expenses, and the ability to carry over funds from year to year.

Here are some key points to consider regarding having an HSA while retired:

• To continue contributing to an HSA after retirement, you must be enrolled in a high-deductible health plan (HDHP).
• You cannot contribute to an HSA if you are enrolled in Medicare.
• Once you enroll in Medicare, you can still use the funds in your HSA for qualified medical expenses tax-free.
• If you retire before age 65 and continue to have an HDHP, you can still contribute to your HSA. After age 65, you can use HSA funds for non-medical expenses penalty-free, though taxes may still apply.

It’s a common concern among retirees: can you keep your Health Savings Account (HSA) after you hang up your work boots? Absolutely! You can retain your HSA in retirement, provided you adhere to specific guidelines.