re: Anybody else using their HSA as a retirement vehicle?

quote:

---

Penalty free but not tax free at age 65 non-medical expenses from what I understand. Still a great benefit. Using it as much as possible.

---

This, which kind of loses the triple tax benefit it has for medical expenses.

What you CAN use it to pay for is once you have medicare is medicare premiums B/C/D which is pretty sweet. You could truly have "premium free" medicare in those aspects in retirement using HSA funds to pay for that which is pretty sweet. Cant use HSA funds (tax free/penalty free) to pay for premiums up until you're on medicare at 65 or older.

Thats kind of what I'm going to use my HSA to pay for then to keep the triple tax advantage of it. We also use it as a slush fund to pay for medical expenses now but putting $8300/yr (well i put $7400, company does $900) into it we wont typically come close to spending near that much in the year on medical expenses. We only reimburse office/hospital visits not prescriptions.

Having a newborn last year has certainly wiped into it a bit though, especially with a wife who seems like shes at the dentist every other day right now

quote:

---

Penalty free but not tax free at age 65 non-medical expenses from what I understand. Still a great benefit. Using it as much as possible.

---

Given that most end of life expenses tend to be medical, it’s best to reserve it for that.

But it is nice to know and I load up my HSA knowing I’m not locking the money for medical expenses only.

quote:

---

I have refused to use any HSA funds for medical expenses since I learned this fact.

---

Epic pro tip: there is no expiration for reimbursement. Keep your documentation, let the money stay invested. But if something comes up and you need the money, you can reimburse yourself for old expenses, even if the actual money is going to paying general bills as you are between jobs or something.