"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living expenses with one of those accounts, you may be subject to a penalty of 20% and income tax on the amount withdrawn or reimbursed."
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.
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.
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.
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".
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.
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.
8 Answers
Helpful Newest
First Oldest
First
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living expenses with one of those accounts, you may be subject to a penalty of 20% and income tax on the amount withdrawn or reimbursed."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.
ADVERTISEMENT
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.
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.
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.