Can You Spend HSA Money on Anything 65? - Exploring HSA Eligible Expenses

Are you wondering if you can spend HSA money on anything once you turn 65? Let's delve into the details of HSA eligible expenses and how they apply to individuals aged 65 and above.

Health Savings Accounts (HSAs) are a valuable tool for saving and paying for medical expenses, offering various tax benefits. However, there are some important considerations to keep in mind, especially regarding spending HSA funds once you reach 65 years old.

Generally, you can use your HSA funds to pay for qualified medical expenses at any age without facing penalties. These expenses include a wide range of medical services and products, such as doctor's visits, prescription medications, and necessary medical equipment.

However, once you turn 65, you have more flexibility in how you can use your HSA funds. While you can still use the money for medical expenses, you also have the option to use it for non-medical purposes.

When you reach 65, here are some key points to consider regarding spending your HSA money:

• You can continue to use your HSA funds for qualified medical expenses without restrictions.
• If you use the funds for non-medical expenses, you will not incur the usual 20% penalty that applies to individuals under 65. The withdrawal will be treated as taxable income, similar to a traditional IRA.
• Non-medical expenses include a broader range of items, such as long-term care insurance premiums, Medicare premiums (except for Medigap), and some expenses related to COBRA continuation coverage.

It's essential to keep track of your expenses and ensure they fall within the eligible categories to avoid any penalties or tax implications. Consult with a financial advisor or tax professional to make informed decisions about using your HSA funds effectively.

At 65, you not only maintain the privilege of using your HSA funds for qualified medical expenses, but you also gain the newfound freedom to access your savings for non-medical necessities without incurring steep penalties.