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HSA Eligibility Planning for the Future
You may open and contribute pre-tax to an HSA under the What Will Happen to My Money
following circumstances. When I Turn 65?
You are enrolled in an IRS consumer driven health plan or You can continue to use your account tax-
high deductible plan free for out-of-pocket health expenses. You
You cannot be enrolled in a non-consumer driven health can use your account to pay for Part B and
D Medicare premiums and any contribution
plan through your spouse or other employer sponsored toward your deductible, copays, and
plan coinsurance in your medical plan design. The
You cannot be enrolled in a Government sponsored one expense you cannot use your account
program (Medicare, Medicaid, Tricare, etc.) for is purchasing a Medicare supplement
You cannot have received VA beneits within the last three insurance policy.
months (unless receiving beneits for a service related
disability) Once you turn age 65, you can also use your
You cannot be claimed as a dependent on someone else’s account to pay for things other than medical
expenses. If used for other expenses, the
tax return amount withdrawn will be taxable as income
You cannot have a healthcare FSA; your spouse cannot but will not be subject to any other penalties.
have a healthcare FSA through his/her own employer Individuals under age 65 who use their
HSA funds for ineligible expenses must pay
income tax and a 20 percent penalty on the
amount withdrawn.
Use Your HSA to Pay For*
Deductible Prescription
expenses drugs
Out-of-pocket Over the
maximum counter drugs
expenses with a written
Dental care prescription
Vision care Hearing aids
* Find more examples at www.irs.gov in IRC Sec.213(d).
Members will pay a penalty and tax on all ineligible HSA
expenses. You are responsible for spending your HSA
dollars appropriately
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You may open and contribute pre-tax to an HSA under the What Will Happen to My Money
following circumstances. When I Turn 65?
You are enrolled in an IRS consumer driven health plan or You can continue to use your account tax-
high deductible plan free for out-of-pocket health expenses. You
You cannot be enrolled in a non-consumer driven health can use your account to pay for Part B and
D Medicare premiums and any contribution
plan through your spouse or other employer sponsored toward your deductible, copays, and
plan coinsurance in your medical plan design. The
You cannot be enrolled in a Government sponsored one expense you cannot use your account
program (Medicare, Medicaid, Tricare, etc.) for is purchasing a Medicare supplement
You cannot have received VA beneits within the last three insurance policy.
months (unless receiving beneits for a service related
disability) Once you turn age 65, you can also use your
You cannot be claimed as a dependent on someone else’s account to pay for things other than medical
expenses. If used for other expenses, the
tax return amount withdrawn will be taxable as income
You cannot have a healthcare FSA; your spouse cannot but will not be subject to any other penalties.
have a healthcare FSA through his/her own employer Individuals under age 65 who use their
HSA funds for ineligible expenses must pay
income tax and a 20 percent penalty on the
amount withdrawn.
Use Your HSA to Pay For*
Deductible Prescription
expenses drugs
Out-of-pocket Over the
maximum counter drugs
expenses with a written
Dental care prescription
Vision care Hearing aids
* Find more examples at www.irs.gov in IRC Sec.213(d).
Members will pay a penalty and tax on all ineligible HSA
expenses. You are responsible for spending your HSA
dollars appropriately
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