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You can withdraw HSA money tax-free for any reason after turning 65 The first thing to know is that you’re allowed to withdraw money penalty-free from your HSA for any reason after 65.
Withdraw for non-medical expenses: Once you’re 65 or older, you can withdraw money for non-medical expenses, subject to ordinary income tax. However, the 20 percent penalty for non-medical ...
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.
Even if you can't do that, HSA withdrawals for non-medical purposes are penalty-free and just taxed at your ordinary income tax rate if the withdrawal is made after age 65.
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 One of its main benefits is that there is no tax on the funds, whether kept in the account or withdrawn to ...
Also, there is a 10% penalty if withdrawals occur before 59½, though, there are some exceptions that do apply. HSA : Pre-tax contributions are made to the HSA account and the growth is tax free ...
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Let's say you make the maximum $7,000 contribution to a traditional IRA and you don't pay into a work-based plan or exceed the income limits. ... Health savings accounts (HSAs) ... Withdrawals are ...