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The first thing to know is that you’re allowed to withdraw money penalty-free from your HSA for any reason after 65. Before that time, if you withdraw money other than for qualifying medical ...
After the age of 65, you can make withdrawals from your HSA that are generally penalty-free. Before you turn 65, however, keep in mind that any withdrawals for non-qualified expenses aren't tax-free.
A health savings account, or HSA, is an account you can use to pay for medical expenses. One of its main benefits is that there is no tax on the funds, whether kept in the account or withdrawn to ...
A taxpayer can generally make contributions to a health savings account for a given tax year until the deadline for filing the individual's income tax returns for that year, which is typically April 15. [25] All contributions to a health savings account from both the employer and the employee count toward the annual maximum.
An HSA functions much like a traditional IRA once you turn 65, with withdrawals being taxed at ordinary income rates and without the usual 20 percent bonus penalty.
Additionally, after the age of 65, you can withdraw funds from an HSA for any purpose without penalty, although withdrawals not used for qualified medical expenses will be subject to income tax.
Tax-Free Withdrawals From a Health Savings Account. ... After age 65 you can withdraw the money for non-medical expenses without a 20% penalty and use it for whatever you want — but you will ...
After the age of 65, you can take penalty-free withdrawals for any purpose, although you won’t enjoy the tax benefits if you use the money for living expenses or other purposes.