If you use your HSA to pay for anything other than qualified medical expenses, the IRS penalizes you by charging income taxes and it may also impose an additional 20 percent penalty on the withdrawal. For example, say you're in the 24 percent tax bracket and you take $1,000 out of you...
Much like a checking account, HSA/FSA funds are managed by a financial institution. You get a debit card, which can be used to pay for qualified medical expenses throughout the year. HSA vs. FSA: What’s the difference? Who is eligible? The biggest difference between the two is the fac...
Once an HSA investor enrolls in Medicare, you are no longer allowed to add new money to the account. However, you can tap it for ongoing medical expenses. HSA holders can also invest their dollars, assuming the company that administers the account makes mutual funds and exchange-traded funds...
Remember that HSA benefits extend beyond basic healthcare expenses. These accounts can pay for dental care, vision expenses, hearing aids, and many medical supplies. By strategically using your HSA throughout retirement, you can handle healthcare costs in a way that isefficient for taxeswhile pres...