Thank you for all the relevant info and taking the time to reply and help me. I see the wisdom in the Bogleheads' perspective. I plan to let it grow for the next few years and revisit the decision when the HSA balance reaches another milestone.Due to the tax advantages, I would suggest leaving (and growing) the HSA and using it for retirement medical expenses, which, as previously mentioned by others, may be higher than one might anticipate due to the Income-Related Monthly Adjustment Amount (IRMAA).
This approach would allow you to avoid the annual tax on the taxable dividends you would otherwise receive.
Many people with large HSA balances get Plan G-HD (high deductible), since Medicare Supplement Plan premiums
cannot be charged to the HSA account.
You can use your HSA for Part B and Part D premiums (including IRMAA), deductibles, copays, and coinsurance, as well as dental, vision, and hearing expenses.
In addition, besides long-term care insurance (within IRS guidelines), you can use your HSA balance for any actual long-term care expenses incurred.
Also, over-the counter pain medicine (such as Tylenol, Advil, Nuprin), allergy medicine (such as Allegra and Zyrtec), and cold/cough medicine (such as NyQuil and Halls cough drops) can be charged to an HSA account.
Just not Medicare Supplement Plan premiums.
Once again, Thank you all.
Statistics: Posted by Tom15452 — Sat Jan 18, 2025 3:22 pm