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Using an HSA While on Medicare
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Sunday, June 28, 2009
QMy wife and I turn 65 this year and will sign up for Medicare. Will we still be able to use the money in our health savings account?
AYou sure can. Even though you can't contribute to an HSA after you sign up for Medicare, you can keep the account and use the money tax-free for medical expenses. In fact, you can use the money for anything after age 65, although you will owe taxes on withdrawals for non-medical expenses.
There are plenty of medical fees to which you can apply the money. For example, you can tap the account for Medicare deductibles and co-payments. You could also use HSA money to cover premiums for Medicare parts A, B and D (prescription-drug coverage), and to pay Medicare Advantage premiums. And you can use HSA money to help pay qualified long-term-care premiums. However, you can't use HSA money tax-free to pay Medigap premiums.
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