Paying Long-Term-Care Premiums With HSA Money

The amount you can withdraw from a health savings account tax-free to pay premiums depends on your age.

Can I use money from my health savings account tax-free to pay long-term-care premiums?

Yes. If you have a “tax-qualified” long-term-care policy, you can use money from your HSA tax-free to pay a portion of the premiums. A long-term-care policy is tax-qualified if it pays benefits when you’re unable to perform at least two activities of daily living (such as bathing and dressing) or when you have severe cognitive impairment. Most long-term-care policies qualify.

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Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.