Talk of The Villages Florida - View Single Post - Health Savings Account (HSA) in retirement?
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Old 10-25-2022, 02:40 PM
lpruettusa lpruettusa is offline
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Quote:
Originally Posted by bsloan1960 View Post
To clarify- I can take my Health Insurance into retirement but not by Tax Deferred Health Savings Account (money is put aside tax free to be used only for medical care)
I suggest you go to one of the free Medicare seminars provided in your state. In Florida, it is SHINE, in Virginia (me), it is VICAP. VICAP, if there are any fed employees/retirees in the audience, will discuss federal retirees special circumstances. I assume SHINE will or will refer you to someone who will. O

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"...federal employees are on borrowed time to maximize the tax-preferred benefits of an HSA. Once you retire and are on Medicare, you no longer qualify to receive an HSA from an HDHP and you can no longer make voluntary contributions to your HSA."
(source: Why a Health Savings Account is a Secret Weapon in Saving for Retirement - Government Executive)


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"Q2: What happens to money in my HSA when I
retire?
A: That depends:
• If you’re under age 65, retired and still have an
HSA-compatible health plan, you can continue to
contribute to the HSA and use the funds for
qualified medical expenses.
• If you’re under age 65, retired and don’t have an
HSA-compatible health plan, you’re no longer
eligible to contribute to the HSA, but can continue
to use the funds for qualified medical expenses
• If you’re 65 or older, retired and on Medicare,
you’re no longer eligible to contribute to the HSA,
but can continue to use the funds for qualified
medical expenses.
• If you’re 65 or older, you’re not limited to using an
HSA just for health care expenses. You may use it
for other expenses, however you’ll need to pay
income taxes on those amounts but won’t have any
early withdrawal penalties."
(source: https://www.livgov.com/hr/Documents/...-Questions.pdf)