Health Savings Account (HSA): What Happens to it When I Retire?

The Health Savings Account (HSA) is a great tool that is going to help us all reduce our health insurance costs and avert the current healthcare crisis in America. But what happens when a person retires? What use is an HSA then?

Your HSA transforms itself at that moment you turn 65, when you officially become eligible for Medicare. Your Health Savings Account, which will have served you all those years as a nice financial cushion before you begin using your insurance policy, flips into something very similar to an Individual Retirement Account (IRA).

That's right. An HSA essentially becomes an IRA when you turn 65. The reason for that is that when you turn 65, you are eligible for Medicare, and HSAs are not meant to help you with Medicare, that is its own system.

So what happens to that money left over in your HSA? If you haven't been sick much, there could be hundreds of thousands of dollars in there!

Don't worry, it's safe. There is no "use it or lose it" policy with HSAs. That is one of the great things about the HSA.

No, your dutiful HSA has now become a retirement account. Now that you're 65, you can begin to pull money out of your HSA without penalty and use it for anything. Use the money for roller blades, dinner, a new computer, a car, or give it to your kids. It's yours to do with what you want. No penalties for withdrawing money.

However, remember, when you take money out of any IRA, that money is taxed by the IRS. You got a tax-deferral when you put the money in, and now you pay taxes to take the money out. Fair, isn't it?

If you want to avoid paying taxes on that money, no problem. Just stick to using the money for healthcare expenses (as approved in IRS Publication 502) and you won't pay taxes on the withdrawals, even after you're 65.

This is just one of the many ways HSAs are so useful and helpful for Americans savings for their own healthcare. The HSA is available today from many insurance agents and financial planners.

Daryl Kulak is the author of the book Health Insurance Off the Grid. This easy-to-read book provides a simple, detailed plan to reduce health insurance expenses by thousands of dollars for people who are self-employed, unemployed or underinsured. The book is available at the Website: http://www.healthoffthegrid.com

---

Long Term Care Insurance

Long Term Care Insurance is needed in the event that... Read More

What You Need to Know About Auto Insurance

Let's be realistic, everyone needs to have auto insurance. Aside... Read More

Auto Insurance Information Online - Compulsory Auto Insurance

In 47 of the 50 United States, it is illegal... Read More

Is Purchasing Travel Insurance Smart?

To answer the question "is purchasing travel insurance smart?" let's... Read More

Life Settlement: Towards A Free Market for Life Insurance

The Life Settlement market is all about providing due access... Read More

Discount Life Insurance Will Give You The Best Protection You Need

There is always a chance that there is a better... Read More

Insurance Glossary of Terms

Assured - Those insured under the terms of an insurance... Read More

Senior Life Settlement-Uses and Applications

In a recent article in the National Underwriter (April, 2005)... Read More

7 Sure-fire Ways of Reducing Your Home Insurance Premium

Home security improvement:All insurance companies will happily offer you a... Read More

About Online Term Life Insurance Rates

Online term life insurance ratesHow simple it is today finding... Read More

Are Accidents More Likely To Occur Closer To Home?

If you are going to be involved in an accident,... Read More

Should I Buy Rental Car Insurance?

Rental car agencies have a menu of insurance policies they... Read More

Everything You Need to Know About Life Insurance

Life insurance is a type of protection that can be... Read More

Health Insurance Plans and their Differences

Health insurance plans have changed dramatically over the past ten... Read More

UK House Insurance - The Risk of Under-insurance

For many years in the UK, motor insurance has been... Read More

What To Do When You Suffer An Injury On The Job?

For over 30 years I have been representing injured workers... Read More

Know Your Own Worth: A Practical Insight Into Covering Up

Almost anything can be insured these days: breasts, legs, your... Read More

Why Dont Women Have Life Insurance?

Traditionally, life insurance companies solicited men as the main breadwinners... Read More

Tips On How To Save When Buying Car Insurance

If you want to save money when you purchase your... Read More

Everybody Wants The Best Term Life Insurance Quote

The information you need about the best term life insurance... Read More

The Awful Truth about Annuity and Insurance Leads

You see the websites, you see the ads: exclusive, never... Read More

Medical Bills - Evaluating Your Personal Injury Insurance Claim

The value of a personal injury claim has a direct... Read More

The Ups and Downs of Temporary Health Insurance

If you're a recent college graduate, or in between jobs,... Read More

Health Savings Accounts (HSA): Do I Still Submit My Bills to Insurance When Using HSA Money?

The Health Savings Account (HSA) is becoming well-known as an... Read More

Accident Factoids

Accidents, personal injuries and insurance claims are here to stay.... Read More

Finding Health Insurance for Self-Employed Individuals: A Guide For the Freelance Newbie

With a rise in those looking to venture out on... Read More

Millions of Americans have No Life Insurance

Only 61% of adult Americans have life insurance (down from... Read More

Term Or Whole Life Insurance - Which Is Right For You?

One of the most important things you will ever do... Read More

Car Insurance Advice for Young Drivers in the UK

Over the course of the last ten years, car insurance... Read More

How Much Can My Auto Rate Increase After One Accident?

Accidents almost always make your insurance rates increase. Whether or... Read More

Motor Vehicle Accident Insurance Claim Guide

This is a FREE Insurance Claim GuideYour "Motor Vehicle" can... Read More

A Life Insurance Quote Became Reality

Life insurance quoteThank goodness John took his life insurance quote... Read More

Guide to Life Insurance

Here is a useful guide to life insurance. Simply put,... Read More