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PianoGirl Asked September 2023

What is an HSA?

I was told one could use an hsa to help with cost of assisted living, but I don’t know what that is.

MACinCT Sep 2023
If already on Medicare, it is not allowed

Geaton777 Sep 2023
"Can you pay for assisted living expenses with an HSA?

No, unfortunately you can't use your HSA, FSA, or HRA to pay for assisted living expenses. In fact, if you do pay for assisted living expenses with one of those accounts, you may be subject to a penalty of 20% and income tax on the amount withdrawn or reimbursed."

source: https://www.hsalist.org/assisted-living-expenses/

You can't have an HSA if you're not earning income because it uses pre-tax dollars from either the wage earner or the employer to fund it. It requires admin and compliance.

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OncehatedDIL Sep 2023
When the company my husband worked for wanted us all to switch to high deductible plans, the company put so much each year into our HSA account and we could contribute more before taxes. The leftover money rolled over each year to the next year. We wanted to get a good amount in there before retirement to cover the high deductible plan years between retirement and medicare. We still contribute for the tax advantage, but yeah, we can't contribute any more after medicare starts.
JoAnn29 Sep 2023
Thanks concerning rollover.
JoAnn29 Sep 2023
"https://www.healthcare.gov/high-deductible-health-plan/"

This is just basic info. There has to be a catch. I know I could set aside money out of my paycheck for healthcare expenses before taxes. But the amount I set aside if not used, I lost it somehow. So I did not join up. So I would make sure how this all works before signing up.
BarbBrooklyn Sep 2023
JoAnn, what you are talking about is an FSA, which has a "use it or lose it"provision. HSAs are different.
AlvaDeer Sep 2023
It stands for "health savings account" I do believe. Has a lot of restrictions, and sometimes demands that savings are spent within a certain amount of time, leading folks to get things they really don't want or need. You can read about them online by googling "Health Savings Accounts".

OncehatedDIL Sep 2023
If I remember right, you can have your hsa on medicare, you just can't contribute to it anymore.

A quick glance at some articles says you cannot use an hsa to pay for assisted living expenses.

We save ours for deductibles and co-pays, it was set up through workplace and doesn't currently have any time restrictions. For us, we can have one only because we have a high deductible health insurance plan.

BarbBrooklyn Sep 2023
You cannot have an HSA if you are on Medicare, generally

Grandma1954 Sep 2023
It is a Health Savings Account.
Use Google and get more info.
You could probably get more info on the IRS website.
The money put into the HSA can be used for Health Care Costs.

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