|
Although Health Savings Accounts (HSAs) have existed for 20 years, they have a lot of very specific rules, and therefore can still be a bit confusing. It’s common knowledge that your HSA can reimburse you for all qualified medical out-of-pocket expenses, but did you know that you can use your HSA to reimburse yourself for your Medicare premiums? Yes, that’s correct!
Even if your Medicare premiums are paid directly from your SS Benefits, you can withdraw the money tax-free from your HSA to reimburse yourself. After turning 65 your HSA can be used to pay Medicare parts B & D as well as Medicare Advantage premiums. It is important to note however, that you cannot use these funds to pay premiums for Medicare supplement policies.
It is also important to note that you can use these funds to pay for medical expenses from past years; they don’t all have to be from the current calendar year. Make sure you keep receipts showing you paid for qualifying expenses, so there is no question should you be audited. This may be brand new knowledge to you, and if you’ve been paying your premiums out-of-pocket, now you know you can reimburse yourself for the past premium payments at any time with no tax repercussions!
Are you older than your spouse and no longer able to contribute to your own HSA, or vice-versa? If your spouse is still qualified to contribute to their own, you (or anyone else) can also contribute to it! Your spouse can then deduct these contributions. As long as you remain married, you can use your respective HSAs to reimburse each other’s expenses to exhaust the balances of your accounts.
Click here to read “How Your HSA Can Reimburse You for Medicare Premiums Paid” and learn all the tips and tricks to get the most out of your HSA.
|
