What Do I Do With My HSA When I Turn 65?

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What changes when you turn 65

As you approach the age of 65, you may be wondering what happens to your Health Savings Account (HSA). An HSA is a valuable tool for managing healthcare expenses, but there are important considerations to keep in mind when you reach this milestone.

When you turn 65, here are a few options to consider for your HSA:

Using and planning your HSA in retirement

• Use the funds for qualified medical expenses: Even after turning 65, you can continue using your HSA funds tax-free for eligible healthcare expenses, including Medicare premiums, long-term care insurance premiums, and more.
• Use the funds for non-medical expenses: While withdrawals for non-qualified expenses are subject to income tax, once you reach 65, you can use the funds for any purpose without penalty.
• Coordinate with Medicare: If you enroll in Medicare, you can no longer contribute to your HSA, but you can still use the existing funds for qualified medical expenses.
• Consider long-term care expenses: As you age, long-term care may become a consideration. Your HSA funds can be used to pay for qualified long-term care premiums tax-free.

It's essential to understand how your HSA can continue to benefit you in retirement. By planning ahead and utilizing your funds wisely, you can make the most of your HSA well beyond age 65.

As you celebrate turning 65, it's the perfect time to explore the versatility of your Health Savings Account (HSA). Not only does it provide continued tax-free withdrawals for qualified medical expenses, but it also opens up new financial opportunities as you plan for retirement.