Health Savings Account (HSA) in retirement?

[bsloan1960]

I'll retire soon from the Federal Government. I have an HSA through them that I'm told I can't take into retirement.

It is the only plan I've ever known and I have no idea where to find a new plan. Any and all information about who offers these and how to sign up is appreciated.

Thanks!

[retiredguy123]

I'm not sure I understand your question. As a Federal retiree, I think you can continue with the same health plan you had as an employee. I had the Standard Blue Cross plan as an employee, and I still have the same plan as a retiree. The only difference is that you pay the premiums monthly instead of biweekly. And, you still have the same health plans to choose from during the annual FEP open season.

[bsloan1960]

I'm not sure I understand your question. As a Federal retiree, I think you can continue with the same health plan you had as an employee. I had the Standard Blue Cross plan as an employee, and I still have the same plan as a retiree. The only difference is that you pay the premiums monthly instead of biweekly. And, you still have the same health plans to choose from during the annual FEP open season.
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)

[retiredguy123]

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)
Sorry, I misread your post. It may not be worth finding another HSA, but rather switching to another FEP plan, like Blue Cross. The FEP plans are very generous as far as the Government contribution to the premiums. When you turn 65, you should do the math and determine if it is worth the cost to pay for Medicare Part B. In my case, it was not worth the cost, so my only health insurance is the FEP standard Blue Cross plan. Good luck.

On another topic, you may want to look at the voluntary retirement contribution system, where you can contribute an amount up to 10 percent of your entire career Government earnings as a lump sum into an account, and then, after you retire, transfer the entire amount into a traditional IRA, which will earn tax deferred income. I did this, and greatly increased the balance of my traditional IRA. I am not sure you are eligible, but, if so, and you have money to invest, it is a good deal.

[blueash]

Your HSA continues to grow tax free and can be used for any legitimate medical expenses. Are you asking if you can open a new HSA so you can continue to contribute from your earned income once you leave the government? Or are you saying that you must find a new administrator for you existing HSA?

[Papa_lecki]

I'll retire soon from the Federal Government. I have an HSA through them that I'm told I can't take into retirement.

It is the only plan I've ever known and I have no idea where to find a new plan. Any and all information about who offers these and how to sign up is appreciated.

Thanks!

Doesn’t make sense. Most financial planners suggest you do not tap into your HSA, pay medical bills out of income while you’re working. Use HSA in retirement

[Toymeister]

I'll retire soon from the Federal Government. I have an HSA through them that I'm told I can't take into retirement.


The hell you can't!

I'm a retired Fed and I have an HSA that I contribute directly to (not a payroll deduction).

The former Lake Michigan Credit Union (now LMCU) with offices in Florida, is one place where you can establish an account.

It's important to note I am in my fifties as I imagine the OP is...

[Woodbear]

You can establish an account with Fidelity. Health Savings Account | HSA Benefits | Fidelity Investments (https://www.fidelity.com/go/hsa/why-hsa) I doubt they are the only ones.

[TorriJ]

I have an HSA. I am retired. I use it for dental work and prescriptions and to cover my deductible.

[gailarlene]

You can keep your HSA when you retire and continue to use the money in it for qualified medical expenses and certain over-the counter items. However, you can no longer contribute to it. Once the funds are used up it's done.

[dougawhite]

You can keep your HSA when you retire and continue to use the money in it for qualified medical expenses and certain over-the counter items. However, you can no longer contribute to it. Once the funds are used up it's done.

Subtle correction; if you retire before 65, before going on Medicare, and you are on a 'high deductible' insurance policy, you can continue to contribute to your HSA account each year.

[BikeRiders]

I researched this a few years ago so my information may not be up to date.. Fidelity was the only HSA administrator at the time who offered the plan for free. All other administrators had a yearly fee. I had to transfer my HSA from my employers option to Fidelity. So, my HSA is now with Fidelity and I am not charged anything for it. I recommend them and have not had any issues there.

[Yellowrose]

Look into the 'GEHA', Gov. Health Alliance plan. Great coverage.
You will receive options to change plans every October on the Gov. retirees web site. One web site is for health care plans to choose The Benefits web site is for Dental & eye coverage. Find a "webinar " for people ready to retire from the Gov. for more details

[retiredguy123]

Look into the 'GEHA', Gov. Health Alliance plan. Great coverage.
You will receive options to change plans every October on the Gov. retirees web site. One web site is for health care plans to choose The Benefits web site is for Dental & eye coverage. Find a "webinar " for people ready to retire from the Gov. for more details
Actually, the open season to change plans in 2022 is from November 14 to December 12.

[bark4me]

I'll retire soon from the Federal Government. I have an HSA through them that I'm told I can't take into retirement.

It is the only plan I've ever known and I have no idea where to find a new plan. Any and all information about who offers these and how to sign up is appreciated.

Thanks!
Cigna and Florida Blue both offer HSA accounts

[Toymeister]

You can keep your HSA when you retire and continue to use the money in it for qualified medical expenses and certain over-the counter items. However,you can no longer contribute to it

This is simply incorrect I and the internal revenue service disagree.

At AGE 65, not when you retire, is when you can no longer contribute. Retirement had nothing to do with it.

[GATORBILL66]

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 retired from the government also. i took my health plan, GEHA with me into retirement. They also have something like the FSA, called health benefits which you can earn up to $250.00 per year to use towards medical prescriptions or other medical supplies.

[MidWestIA]

you can go to any hsa this is just fidelity how to

Transfer Your HSA | Health Savings Account | Fidelity Investments (https://www.fidelity.com/go/hsa/transfer)

[phloscheider]

I had an HSA at BMO Harris bank when I retired. This year, BMO Harris transferred my account to Lively. Unfortunately I do not know much bout them

[virtue51]

If you are looking for information about your Health Savings Account, I suggest that you go to Internal Revenue Service | An official website of the United States government (http://www.irs.gov). Some of the responses supplied on this forum are not correct.

[lpruettusa]

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 (https://www.govexec.com/pay-benefits/2022/01/why-health-savings-account-secret-weapon-saving-retirement/361149/))


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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/HSA-Comm-4-HSA-Frequently-Asked-Questions.pdf)

[Haggar]

Doesn’t make sense. Most financial planners suggest you do not tap into your HSA, pay medical bills out of income while you’re working. Use HSA in retirement

This used to make sense when more people itemized. Now that most don't and paying the medical expense out of pocket is not tax beneficial it really doesn't matter. In fact by using the HSA to pay expenses - if you are eligible - it may free up money to make the maximum HSA contribution.

[Haggar]

You can keep your HSA when you retire and continue to use the money in it for qualified medical expenses and certain over-the counter items. However, you can no longer contribute to it. Once the funds are used up it's done.

The CARES Act of 2020 added thousand of over the counter items that could be paid for by an HSA including allergy and cold meds, ointments, pain relievers and feminine care products.

Many taxpayers do not realize that they can pay their medicare premiums out of their HSA.

[Haggar]

This is simply incorrect I and the internal revenue service disagree.

At AGE 65, not when you retire, is when you can no longer contribute. Retirement had nothing to do with it.

The actual rule is you cannot contribute to a HSA if you are enrolled in Medicare A,B or D.
If you're over 65 and not taking medicare you can still contribute.
If you're younger than 65 and taking medicare you cannot contribute.

[OhioBuckeye]

🤔 don’t trust the govt.

[jump4]

I'll retire soon from the Federal Government. I have an HSA through them that I'm told I can't take into retirement.

It is the only plan I've ever known and I have no idea where to find a new plan. Any and all information about who offers these and how to sign up is appreciated.

Thanks!
It is truly amazing how much confusion and misinformation in this thread!

The OP apparently has an HDHP through the FEHB program for Federal Employees.

That HDHP insurance company probably opened an HSA at a financial firm of it's choosing, and contributed to it each year. Different insurance companies partner with different HSA trustees.

OP can keep that same HDHP plan and companion HSA account after retirement. However, once you reach age 65 and enroll in Medicare, you can no longer contribute to an HSA. If OP keeps the HDHP plan while on Medicare, contributions will be put into an FSA instead of the HSA.

You can (and probably should sometime) do a direct rollover from one HSA to another HSA. Fidelity HSA is the highest rated with no fees and no minimum balance.
Transfer Your HSA | Health Savings Account | Fidelity Investments (https://www.fidelity.com/go/hsa/transfer) :pepper2:

For HSA ratings, see:
Best HSA Account Providers In 2022 | The College Investor (https://thecollegeinvestor.com/22222/best-hsa/)
The Best HSA Accounts and Providers Guide | Morningstar (https://www.morningstar.com/specials/the-best-hsa-providers-of-2022)

[allsport]

I'll retire soon from the Federal Government. I have an HSA through them that I'm told I can't take into retirement.

It is the only plan I've ever known and I have no idea where to find a new plan. Any and all information about who offers these and how to sign up is appreciated.

Thanks!

Keep the plan you have even when you turn 65. All the information that I have ever seen says your federal plan is the better than anything else. I have been retired for 15yrs and still have Fed Blue. The biggest challenge is making providers understand it is your primary health plan. Are you talking about health savings plans?

[allsport]

It is truly amazing how much confusion and misinformation in this thread!

The OP apparently has an HDHP through the FEHB program for Federal Employees.

That HDHP insurance company probably opened an HSA at a financial firm of it's choosing, and contributed to it each year. Different insurance companies partner with different HSA trustees.

OP can keep that same HDHP plan and companion HSA account after retirement. However, once you reach age 65 and enroll in Medicare, you can no longer contribute to an HSA. If OP keeps the HDHP plan while on Medicare, contributions will be put into an FSA instead of the HSA.

You can (and probably should sometime) do a direct rollover from one HSA to another HSA. Fidelity HSA is the highest rated with no fees and no minimum balance.
Transfer Your HSA | Health Savings Account | Fidelity Investments (https://www.fidelity.com/go/hsa/transfer) :pepper2:

For HSA ratings, see:
Best HSA Account Providers In 2022 | The College Investor (https://thecollegeinvestor.com/22222/best-hsa/)
The Best HSA Accounts and Providers Guide | Morningstar (https://www.morningstar.com/specials/the-best-hsa-providers-of-2022)

You do not have to take Medicare, you can keep your federal plan. Take Medicare part A because it is free and do not take B or supplemental plans.