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> pay yourself with tax free income when you finally need to My understanding's that direct withdraws are possible after 65, taxed as income. Does your "when y
by mighmi 3y ago
> pay yourself with tax free income when you finally need to
My understanding's that direct withdraws are possible after 65, taxed as income. Does your "when you finally need to" mean only withdrawing for healthcare reasons or is there a way to transfer or withdraw without a tax hit, besides for health costs?
- lotsofpulp 3y agoYes, worst case scenario, it performs as an IRA/401k. But pretty much everyone will incur healthcare costs as they get older, so you should be able to withdraw tax free for those. And all healthcare costs incurred by your family during your lifetime while you had an HSA are eligible for reimbursement. Quite frankly, I do not know how auditable a 40 year old medical receipt is. Is the IRS' plan to just take everyone's word for it?
- smsm42 3y agoProbably yes, until they audit you. I don't think many people who want to defraud IRS do it by faking 40 year old medical receipts.
- ethbr1 3y agoMedical expenses is a deduction category that can be itemized? https://www.irs.gov/taxtopics/tc502 https://www.irs.gov/taxtopics/tc502 Never needed it, so don't know all the rules are, but I'd imagine the IRS gets a lot of fraud through it (since hospitals wouldn't report from their side).
- lotsofpulp 3y agoBut how would they audit it, if the healthcare provider has retired or deleted their records from 40+ years ago? Are healthcare providers keeping records that long?