05-23-2016, 12:39 PM
(This post was last modified: 05-23-2016, 12:39 PM by Dividendsrule.)
"I also have a HSA and it saves on some taxes but it has to be used within a certain time frame or the funds whisk away into thin air."
Hey Ray, where do you see that? I looked at the HSA FAQ page over here https://www.hsaresources.com/faq/#opening-01 and they say:
3. Can I withdraw the funds from my HSA account at any time?
Yes, however, if the funds are withdrawn for any expense other than a qualified medical expense, the IRS will impose a 20% penalty tax. After you reach age 65 you can withdraw the funds without penalty but the amounts withdrawn will be taxable as ordinary income.
Looks like HSA can be used as basically a Traditional IRA after age 65?
Hey Ray, where do you see that? I looked at the HSA FAQ page over here https://www.hsaresources.com/faq/#opening-01 and they say:
3. Can I withdraw the funds from my HSA account at any time?
Yes, however, if the funds are withdrawn for any expense other than a qualified medical expense, the IRS will impose a 20% penalty tax. After you reach age 65 you can withdraw the funds without penalty but the amounts withdrawn will be taxable as ordinary income.
Looks like HSA can be used as basically a Traditional IRA after age 65?