What is a Health Savings Account?
A Health Savings Account (HSA) lets you set aside money on a pre-tax basis to pay for qualified medical expenses, excluding premiums. However, you are only able to contribute to an HSA if you have a High Deductible Health Plan (HDHP).
At 65, you can withdraw funds from your HSA for any purpose without incurring a penalty. If the money is used
for qualified medical expenses, the withdrawal remains tax-free. However, withdrawals for non-medical expenses are generally subject to income tax. Starting at 55, you’re allowed to make an extra contribution of $1,000 annually to your HSA. For 2024, the maximum contribution limit is $4,150 for individuals with self-only coverage and $8,300 for those with family coverage.
Check with your employer if you have any further questions regarding your HSA..