When you reach Medicare, the rules for Health Savings Accounts change, and it's essential to understand how to navigate these changes to avoid penalties and maximize tax benefits. Contributing to an HSA requires a high deductible health plan, and once you're on Medicare, you can no longer contribute to the account. However, you can still use the balance to pay for medical expenses, including Medicare premiums, and even pay for long-term care insurance. It's crucial to understand the rules and regulations surrounding HSA distributions, especially when it comes to taking money out for non-medical expenses, which can result in penalties and taxes.
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