When Can You Withdraw from an HSA Plan?

One of the benefits of having a Health Savings Account (HSA) is the ability to withdraw funds for eligible medical expenses. But when exactly can you make withdrawals from your HSA plan? Here are some key points to keep in mind:

- You can withdraw from your HSA at any time to pay for qualified medical expenses for yourself, your spouse, or your dependents.

- There is no deadline for using the funds in your HSA, unlike a Flexible Spending Account (FSA) which may have a use-it-or-lose-it policy.

- If you withdraw funds for non-qualified expenses before age 65, you will be subject to income tax and a 20% penalty. After age 65, you can withdraw funds penalty-free for any reason, but withdrawals for non-qualified expenses will still be subject to income tax.

- You can reimburse yourself from your HSA for medical expenses you paid out of pocket in the past, as long as the expenses were incurred after you opened the HSA.

- Keep records of your medical expenses and HSA withdrawals to ensure compliance with IRS rules and regulations.

With a Health Savings Account (HSA), one of the most appealing aspects is your ability to withdraw funds for qualified medical costs whenever you need to. This flexibility is particularly beneficial during unforeseen medical situations.