What Happens to Money in My HSA When I Turn 65?

Turning 65 is a significant milestone, especially when it comes to your HSA (Health Savings Account). Many individuals wonder about the fate of their HSA funds once they reach this age. Let's delve into what happens to the money in your HSA when you turn 65.

When you turn 65, several options are available for your HSA:

• You can continue to use the funds tax-free for qualified medical expenses.
• If you enroll in Medicare, you can use the funds for Medicare premiums, copays, deductibles, and other qualified medical expenses.
• You can withdraw the funds for non-medical expenses, but they will be subject to income tax without penalty.
• You can use the funds for long-term care insurance premiums.
• After turning 65, you have the flexibility to use your HSA funds as needed without penalties, even for non-medical expenses.

It's essential to understand that while you have more flexibility with your HSA funds at 65, using them for medical expenses continues to offer significant tax advantages.

When you reach the age of 65, your HSA opens up a world of possibilities. Not only can you continue using those funds for qualified medical expenses tax-free, but you also gain additional options, especially if you enroll in Medicare.