When Can You Use HSA Funds? - Everything You Need to Know

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare expenses while also saving money on taxes. One common question that arises about HSAs is - when can you use HSA funds?

Here are the situations in which you can use HSA funds:

• Qualified Medical Expenses: You can use HSA funds to pay for medical expenses that are considered qualified by the IRS. This includes a wide range of healthcare services, treatments, and medications.
• COBRA Premiums: If you are eligible for COBRA continuation coverage, you can use HSA funds to pay for the premiums.
• Medicare Premiums: You can use HSA funds to pay for Medicare Parts A, B, C, and D premiums.
• Long-Term Care Services and Premiums: HSA funds can be used to pay for eligible long-term care services and premiums.
• Out-of-Pocket Costs: If you have any out-of-pocket medical expenses, you can use HSA funds to cover those costs.
• Non-Medical Expenses after Age 65: Once you turn 65, you can use HSA funds for non-medical expenses without penalty. However, income tax will still apply.

It's important to keep in mind that using HSA funds for non-qualified expenses before age 65 may result in penalties and taxes. Therefore, it's crucial to understand the rules and regulations surrounding HSA fund usage.

Health Savings Accounts (HSAs) offer a fantastic tax-saving vehicle that lets you pay for a broad spectrum of qualified medical expenses, providing flexibility in how and when you utilize your funds.