About Health Savings Account Withdrawals After Age 65
-
Benefits
-
If you withdraw money from your HSA for non-qualified expenses, it will not incur a penalty if done after age 65. This is opposed to a 10 percent penalty if you withdraw funds before age 65 for non-qualified expenses.
Significance
-
Funds that are withdrawn for non-qualified purposes are subject to taxes, and will be taxed at the some rate as the rest of your income. Long-term care insurance premium payments and many expenses related to long-term care are considered qualified expenses.
Considerations
-
Medicare premiums are considered qualified health care expenses, so you can withdraw money from your HSA for these purposes without incurring taxes on the money. However, the same is not true for Medicare supplement plan payments, as these plans are considered non-qualified expenses.
-
Healthcare Management - Related Articles
- Rules & Regulations for a Health Savings Account
- Health Savings Account Info
- Health Savings Account Benefits & Features
- Questions to Ask About a Health Savings Account
- About Eligible Expenses for a Health Savings Account
- About Health Savings Accounts in Tennessee
- About a Government Health Savings Account