‘I Play Pickleball in Retirement.’ Is It HSA-Eligible?

Chances are, you’ve heard of the Trump megabill that was recently signed into law. The so-called “One Big Beautiful Bill” (OBBB) is garnering chatter and for good reason: A lot is included in the mega legislation.

But even though many provisions survived the bill’s initial proposal, several did not. For instance, under the originally proposed megabill, gym memberships — and therefore pickleball courts in gyms — could have been eligible expenses for Health Savings Accounts (HSAs).

*HSAs are tax-advantaged savings accounts that allow pre-tax contributions and tax-free withdrawals for qualified medical expenses.

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While the provision to make gym memberships HSA-eligible didn't make it into the final version of the OBBB, you may still be able to claim certain expenses for staying active in retirement.

Stay active in retirement with HSA-eligible expenses

Retirees may use HSAs to save on taxes while playing sports — or by participating in other exercises — in retirement.

For instance, as a pickleball player (or “pickler”) myself, I often put in contact lenses when I go out to play. Prescription contact lenses and glasses are HSA-eligible.

Here are a few other examples of HSA-eligible expenses for retirees who like to stay active:

• Allergy medications, for playing outdoor sports like golf or basketball.
• First aid kits are helpful for all occasions, but particularly for contact sports.
• Hearing aids — so you can properly hear if that tennis or pickleball was “out” or not!

But you may be wondering: Is sports equipment or facility usage HSA-eligible? Well, that depends.

If you meet the strict guidelines of having a “Letter of Medical Necessity” (LMN) from a doctor specifying that, say, “golf” is medically necessary for the specific condition you have, then your golf expenses might be HSA-eligible. However, that rarely happens and is often not the case.

And while you can use HSA funds for a non-qualified expense, like pickleball, without penalty after you reach 65 years old, the withdrawal would be considered taxable income.

But that shouldn’t stop you from reaping the health benefits of staying active in retirement.

Best sports for older adults may increase life span

Exercising is tough for all ages, but it can be particularly difficult as you get older. Human bodies don’t work the same at age ten as they do at age 70.

However, exercising in retirement can significantly improve your health. The Physical Activity Guidelines for Americans, released by the U.S. Department of Health and Human Services, suggests that 150 minutes of brisk walking or 75 minutes of running each week may help you live longer.

And according to AARP, ten types of exercise can help you achieve a longer lifespan. Here are the top five:

• Walking. Almost one-third of older adults report they do some type of brisk walk each day.
• Running. If you have a busy schedule, going for a run can cut down on the time spent exercising.
• Water aerobics and workouts. One study of 80,000 people found that swimmers were 41% less likely to die of a heart disease or stroke, per AARP.
• Dancing. Whether it’s swing, line dance, or ballroom, dancers may have stronger muscles, better balance, and a better mood, according to AARP.
• Weightlifting. For the seriously motivated, lifting weights is an excellent way to maintain physical strength in retirement, helping with tasks like climbing stairs or carrying heavy groceries, per the National Institute on Aging.

Other popular exercises in retirement include golf, tennis, and badminton. I tend to gravitate towards pickleball or aerobics classes myself (town or city-led community centers can have cheaper class rates and feature more older adults than maybe privately-led sessions). But it’s really a matter of personal preference.

Of course, as with all exercises, it’s important to take things slowly, ensure you have the proper form, and talk to a doctor if you’re unsure whether an exercise is right for you.

Fun retirement ideas that help your tax bill

If you’re looking for a way to save on taxes and are not so much into fitness, no biggie. There are plenty of fun activities to do in retirement with added tax benefits. Here are a few of our favorites:

• Volunteering. The Urban Institute reports that 60% of adults aged 55 and older volunteer. Certain volunteerism expenses, like meals, lodging, and gas, may be tax-deductible.
• Learning a new skill. Research shows education is strongly associated with health benefits. And if you’re interested in saving on tax, you can potentially do so through the lifetime learning credit.
• Picking up a hobby. Got a secret talent? Why not try it out with a hobby? Although hobby expenses aren’t tax-deductible, you won’t be subject to the self-employment tax, though you may still owe taxes on hobby income.

Whatever you choose to do in retirement, be sure it’s right for you. That can be trying a new activity while saving on tax, or reaping the health merits (and perhaps HSA benefits) by staying active. Either way, there are a plethora of ideas out there to help you get started.

And who knows? Maybe future changes on Capitol Hill will lead to an HSA-eligible gym membership, as initially proposed in the so-called “One Big Beautiful Bill.” We can dream, right?

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