What Can You Use Your HSA for After Age 65?

As you reach the age of 65, you may wonder what will happen to your Health Savings Account (HSA). Fortunately, an HSA remains a valuable financial tool even after you reach this milestone. Here are some ways you can continue to use your HSA after age 65:

1. Healthcare Expenses:

• You can still use your HSA to pay for qualified medical expenses, including deductibles, copayments, and coinsurance.

2. Medicare Premiums:

• You can use your HSA funds to pay for Medicare premiums, including Part B, Part D, and Medicare Advantage premiums.

3. Long-Term Care Premiums:

• If you have long-term care insurance, you can use your HSA to pay for the premiums.

4. Retiree Health Insurance Premiums:

• HSA funds can be used to pay for retiree health insurance premiums before you reach Medicare eligibility.

5. Prescription Drugs:

• You can continue to use your HSA to pay for prescription drugs, which are considered qualified medical expenses.

6. Coordinating with Other Accounts:

• If you have other retirement accounts, such as a 401(k) or IRA, you can strategize how to best utilize your HSA in retirement alongside these accounts.

It's important to note that while you can continue to use your HSA for various medical expenses after age 65, if you use your HSA funds for non-medical expenses, you will be subject to income tax and potential penalties. By understanding the continued benefits of an HSA in retirement, you can make informed decisions about how to manage your healthcare costs as you age.

After reaching 65, your Health Savings Account (HSA) continues to be a crucial resource for managing healthcare costs. You can cover a variety of qualified expenses, making it an essential tool as you transition into retirement.