Questions and Answers
How are HSA distributions taxed after an HSA owner is no longer an eligible individual?
If an HSA owner is no longer an eligible individual (e.g., over age 65 and enrolled in Medicare or no longer has a high-deductible health plan), distributions used exclusively to pay for qualified medical expenses, including those of his/her spouse and dependents, continue to be excludable from the HSA owner's gross income.
(Posted: 04/02/2008)