Health Savings Accounts After Medicare
You can continue withdrawing from an HSA after joining Medicare, but you won't be able to make new contributions.
I am about to turn 65, but I am still working. I have a high-deductible health insurance policy and health savings account through work now, but I will be signing up for Medicare soon. Can I keep my HSA account after I am on Medicare?
You can continue to use the money already in the account tax-free for uninsured medical expenses. But you can no longer make new contributions to your health savings account after you sign up for Medicare.
Many out-of-pocket expenses qualify for tax-free HSA withdrawals even after you’re on Medicare. You can use the money to pay premiums for Medicare Part B, Part D prescription-drug coverage or all-in-one private Medicare Advantage plans (but not for medigap premiums). You can also use the money for co-payments and deductibles you pay for medical expenses, out-of-pocket costs for prescription drugs, vision and dental care, and even a portion of qualified long-term-care premiums ($3,500 in 2012 for people ages 61 to 70, for example and more if you’re older). For a full list of eligible expenses, see IRS Publication 502 Medical and Dental Expenses.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
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.
-
GM Stock Accelerates After Earnings Beat
General Motors beat expectations for the first quarter and raised its outlook for the year. Here's what you need to know.
By Joey Solitro Published
-
Georgia Has a New Income Tax Rate for 2024
Tax Cuts Georgians now have a tax package containing income tax cuts, childcare relief, and potential property tax caps.
By Kelley R. Taylor Published
-
Medicaid Managed Care Groups Under Congressional Investigation
Lawmakers question Medicaid MCOs over their high rates of prior authorization denials.
By Joey Solitro Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
Costco to Offer Outpatient Healthcare Services Starting at $29
Costco members willing to pay cash can get discount pricing on some outpatient services, including virtual primary care for $29.
By Joey Solitro Published
-
Hospitals Say Increased Medicare Reimbursement Is Not Enough: Kiplinger Economic Forecasts
Economic Forecasts Medicare will bump up hospital reimbursements by 3.1% in 2024, but the industry says it's not enough as it comes off its worst financial year of the pandemic.
By Matthew Housiaux Published
-
More Weight-Loss Drugs, Like Ozempic, are in the Works: Kiplinger Economic Forecasts
Economic Forecasts Pharmaceutical companies are developing more weight-loss drugs similar to Ozempic, but these injectables are still expensive.
By John Miley Published
-
Amazon launches RxPass — its new subscription service for medication
Amazon's new program, RxPass, lets Prime members ship prescription medications to their homes for just $5 a month.
By Erin Bendig Published
-
Costco Photo: A Kirkland Signature Perk Gets the Boot
Costco already removed photo centers and services from its warehouses. Now, the online Costco Photo Center is being scuttled.
By Bob Niedt Published
-
Everything You Need to Know About The Health Care Tax Credit
Need to get health insurance through an Affordable Care Act exchange? You may be eligible for help.
By Joy Taylor Last updated