How to Withdraw From an HSA at Age 65

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A health savings account, or HSA, provides an way to put money aside for medical care. With an HSA, individuals can put money aside each year, and use that money to pay for medical costs not covered by insurance. These medical costs can include co-payments, prescription drugs, eyeglasses and other approved expenses. One overlooked feature of the HSA, however, is that the money that has accumulated can be withdrawn when the holder of the account reaches the age of 65.

Find a copy of your most recent HSA statement. You need to know how much is in the account before you can start planning your withdrawals.

Contact the administrator of the HSA. The contact information should be listed on your statement. Ask the administrator to send you a debit card you can use to make purchases.

Use the debit card associated with your HSA account just as you would any other debit card. Once you turn 65, you can use the money in your HSA account to pay for both medical and non-medical expenses.

Keep a copy of your receipt each time you make a purchase with your HSA funds. Keep these receipts with your tax documentation. The money used to make non-medical purchases with an HSA is taxable as ordinary income.