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Can Health Savings Account (HSA) funds be used to pay for Long Term Care Insurance? I'm wondering if it's possible to use funds from my Health Savings Account (HSA) to pay for Long Term Care Insurance. Can anyone provide some information on this?
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Yes, it is possible to use funds from a Health Savings Account (HSA) to pay for Long Term Care Insurance. Long Term Care Insurance is a type of insurance that covers the costs associated with long-term care services, such as nursing home care, assisted living, and in-home care. HSA funds can be used to pay for qualified medical expenses, and the Internal Revenue Service (IRS) considers Long Term Care Insurance premiums as qualified medical expenses. According to the IRS, the maximum amount that can be withdrawn from an HSA to pay for Long Term Care Insurance premiums is based on the age of the insured individual. For individuals who are 40 years old or younger, the maximum amount is $450. For individuals between the ages of 41 and 50, the maximum amount is $850. For individuals between the ages of 51 and 60, the maximum amount is $1,690. For individuals between the ages of 61 and 70, the maximum amount is $4,520. And for individuals who are 71 years old or older, the maximum amount is $5,640. It's important to note that these amounts are subject to change, so it's always a good idea to consult with a tax professional or financial advisor for the most up-to-date information. Please keep in mind that this information is based on current regulations and may be subject to change. It's always a good idea to check with your HSA provider and review the specific terms and conditions of your plan to determine if Long Term Care Insurance premiums are eligible for reimbursement from your HSA.
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