Hello All,
I wanted to share some information about Health Savings Accounts (commonly referred to as HSA) that I thought might be useful to many of you. For those who are not aware, HSA’s are tax advantaged accounts that can be used by people who have qualifying high deductible health plans. When faced with medical expenses which are not covered by the policy, withdrawals made from the HSA to pay for those expenses are not taxed. An article written by Sarah Brenner, JD from the Slott Report points out 7 distributions that you may not have been aware of:
- You can take a distribution from your HSA for medical expenses besides doctor’s bills. Medical supplies, prescription co-payments, dental and vision care, and even chiropractic services all may qualify for tax free withdrawals.
- Your HSA can be used to pay for the medical bills of your spouse or children, even if they are not covered under your high deductible health plan.
- If you paid medical expenses in a previous year, you can still take a withdrawal from your HSA to reimburse yourself so long as the expenses occurred after your HSA had been set up.
- You can still keep your HSA and take tax-free distributions from it to pay medical expenses even after you stop making contributions and are no longer covered by a high deductible health plan.
- Once you are enrolled in Medicare you can no longer contribute to your HSA, however you can still take distributions to pay for qualified medical expenses.
- After you turn 65, you can begin using your HSA distributions to pay for certain insurance premiums which are normally not allowed.
- If your spouse is the beneficiary of your HSA, they can continue to access the funds tax free after your death.
I encourage you to check out the full article which you can access here. Please don’t hesitate to reach out if you have questions about HSA’s or any other financial needs.
Cheers!
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