HSA and Medicare: Using HSA To Pay for Medicare Premiums
by Paul Wynn | Originally posted on USN
If you’re interested in learning about a triple-tax benefit plan, then look no further than health savings accounts, also referred to as HSAs for short.
HSAs established by the Internal Revenue Service provide three distinct tax advantages for Medicare-eligible individuals:
Your contributions reduce your taxable income.
Any investment growth within the account is tax free.
Withdrawals used to pay for qualified medical expenses are tax free.
What Can You Use an HSA to Pay for Tax Free?
Before you use your HSA, make sure the medical expense is covered.
Qualified medical expenses include:
Doctor's visits and copayments.
Dental treatments (such as routine cleanings, fillings and orthodontics).
Vision care (including glasses, contact lenses and eye surgery).
Physical therapy.
Laboratory and diagnostic fees and services.
Medical equipment (such as hearing aids, crutches and wheelchairs).
HSA funds are not permitted for use in paying private health insurance premiums.