I understand an HSA account holds pre-tax money, which can grow tax-free and be used for authorized medical expenses. After age 65, one can withdraw HSA funds for any purpose without incurring a pe...
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I understand an HSA account holds pre-tax money, which can grow tax-free and be used for authorized medical expenses. After age 65, one can withdraw HSA funds for any purpose without incurring a penalty, but one will owe regular income tax on those withdrawals. This means that while one can use their HSA for non-medical expenses, the funds will be subject to income tax, similar to a traditional IRA. It's advisable to keep detailed records of any out-of-pocket medical expenses that weren't reimbursed by insurance, flexible savings accounts, or other means. In the future, using those records can justify tax-free withdrawals for years or even decades. If I do not have earned income, but am enrolled in a Qualified HDHP, can I contribute from my passive income within the 2025 contribution limits of $4,300 for self-only coverage and $8,550 for family coverage, and additionaal $1000 per individual as a catch-up contribution for individuals aged 55 and older?