Accelerating your savings for 55+

Aging presents a lot of opportunities including the ability to play catch-up with your HSA.



If you're 55 or older and not enrolled in Medicare (the federal program that provides basic health benefits to people aged 65 or older), you can contribute up to an additional $1,000 to your HSA - often referred to as a "catch-up amount". These additional contributions are a way to help your HSA keep pace with your age.

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If you're enrolled in an HDHP for the whole year, you can add the entire catch-up amount regardless of where your birthday falls within the year.

If you had HDHP coverage for only part of the year, you have to prorate the catch-up amount.

Once you turn 65 years of age, your Health Savings Account is freed up substantially. You are free to spend your HSA funds on whatever you want, not just qualified medical expenses. Note that any distribution for non qualified medical expenses will be taxed (just like ordinary income), but at least you are getting the funds out of your HSA.