What Can I Spend HSA Money on After Age 65?

As you reach the age of 65, you may be wondering about the flexibility of your Health Savings Account (HSA) funds.

After reaching 65, you can use your HSA funds for a variety of healthcare expenses as well as additional non-medical expenses without facing any penalties.

Let's explore the different ways you can spend your HSA money after turning 65:

• Healthcare Expenses: You can continue to use your HSA funds tax-free for a wide range of medical services and products.
• Medicare Premiums: You can pay for Medicare premiums using your HSA funds.
• Long-Term Care Insurance Premiums: HSA funds can be used to pay for long-term care insurance premiums.
• Prescription Drugs: Prescription drug costs are also eligible expenses that can be covered by your HSA funds.
• Dental and Vision Care: Expenses related to dental and vision care can be paid for using HSA funds.
• Non-Medical Expenses: After the age of 65, you can also withdraw funds from your HSA for non-medical expenses without any penalties. However, these withdrawals will be subject to income tax, similar to a traditional IRA.

It's important to note that while there are no penalty restrictions on using HSA funds after the age of 65, you will be responsible for paying income tax on non-medical withdrawals.

As you approach your golden years, you might find yourself asking how you can best utilize your Health Savings Account (HSA) funds now that you're over 65.

Fortunately, your HSA becomes even more versatile after this age, allowing you to cover various healthcare expenses while also giving you the option to use your funds for personal, non-medical needs without the dreaded penalty.