What Happens to My HSA When I Turn 65?

Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.

What happens to your HSA at 65

Many people wonder what happens to their Health Savings Account (HSA) when they turn 65.

When you turn 65, your HSA stays with you and continues to be a valuable asset for your healthcare needs, but there are some important things to keep in mind:

Overall, your HSA remains a valuable tool for managing healthcare costs even after you turn 65.

As you approach your 65th birthday, you might wonder about the future of your Health Savings Account (HSA). The good news is that your HSA remains intact, offering flexibility and financial support for your medical needs.

Medicare enrollment rules and withdrawal taxes

• Once you enroll in Medicare, you can no longer contribute to your HSA, but you can still use the funds for qualified medical expenses tax-free.
• You can also use your HSA funds to pay for Medicare premiums, deductibles, copays, and coinsurance.
• If you use your HSA funds for non-qualified expenses after age 65, you will only pay income tax on the withdrawal without the additional 20% penalty.
• After age 65, you can withdraw funds from your HSA for any reason without penalty, but regular income tax will apply if the distribution is not used for qualified medical expenses.

Once enrolled in Medicare, contributions to your HSA stop, but the existing balance is still available for qualified expenses without the worry of penalties.