Can I contribute to an FSA after I retire?
Asked by: Hunter Vandervort | Last update: September 19, 2025Score: 4.1/5 (49 votes)
Can you have an FSA if you are over 65?
When you retire, you may continue contributions to your Health Care Flexible Spending Account (FSA), but only on an after-tax basis under the provision of the Consolidated Omnibus Budget Reconciliation Act (COBRA).
Can you contribute to an FSA if you are collecting Social Security?
Tax-free contributions may slightly reduce your Social Security benefits. However, the value of your tax savings with an FSA should more than offset the slight reduction in Social Security benefits in future years.
Who cannot participate in an FSA plan?
Though there are exceptions, self-employed employees and shareholders who own 2% or more in an S corporation, LLC, LLP, PC, sole proprietorship or partnership are generally ineligible for FSAs. Employees with HSAs cannot enroll in an FSA. However, employees with HSAs can enroll in a child and elderly care FSA.
Can I still use my FSA after I quit my job?
On health care FSA any money left in the account when you quit is forfeit unless you sign up for continued fsa with COBRA. However, any money you have spent from it is free and clear even if your paychecks haven't had that amount deducted yet since medical FSAs are front loaded.
Can You Contribute to an HSA in Retirement?
What happens to my FSA when I retire?
Employers are not allowed to ask for money back that you spent from your FSA if you quit or retire. This is due to the Uniform Coverage rule which ensures that your Flexible Spending Account funds are available to you in full as soon as your plan year starts. Any FSA amount you don't use is returned to your employer.
What happens to FSA if you don't use it?
The IRS created the ""use or lose"" rule, which states that all money left in your FSA is forfeited after the benefit period ends . If you don't use all of your FSA funds during the benefit period, you risk losing money.
Can you use FSA for gym membership?
But that's not all a Letter of Medical Necessity can do for you. You can even pay for your gym membership with FSA/HSA funds, making it easier than ever to access top-of-the-line equipment like the models we have in our studios.
Can I use my FSA for someone not on my insurance?
Yes, the FSA does not require that your dependents be covered under your health insurance plan. You can use your account to pay for eligible health care expenses for your family, regardless of the health insurance plan in which they are enrolled.
Is an HSA or FSA better?
Bottom line: Both HSAs and FSAs provide financial benefits for managing health care expenses. HSAs offer more flexibility and long-term growth potential, making them a valuable tool for future financial planning. Learn about HSA options from Aetna.
Can federal retirees participate in FSA?
Federal Flexible Spending Account Program: The Federal Flexible Spending Account Program (FSAFEDS) is a payroll benefit that allows employees to allocate pre-tax money to pay for eligible out-of-pocket health care and dependent care expenses. Since it is a payroll benefit, it is not available to retirees.
Is it wise to draw Social Security at 62?
Taking Social Security early reduces your benefits, but you'll also receive monthly payments for a longer period of time. On the other hand, taking Social Security later results in fewer checks during your lifetime, but delaying means each check will be larger.
Can retired people have a HSA?
Bottom Line. You can contribute to a health savings account after you retire, so long as you are not enrolled in Medicare.
What happens if you contribute to an FSA while on Medicare?
If you have a Flexible Spending Arrangement (FSA), as long as you're employed, you can continue to contribute to your FSA without penalty. If you have a Health Reimbursement Arrangement (HRA) through your employer, only the employer makes contributions, and these contributions can continue once you have Medicare.
What is the age limit for FSA contributions?
You set aside money for your dependent care flexible spending account (DepCare FSA) from your paycheck before taxes are taken out and use the funds for caregiving expenses for your child (up to age 13) or eligible adult dependent.
Can you have an FSA while on Social Security?
Since your Social Security taxes will be calculated after your FSA contributions are deducted from your pay, your Social Security benefits may be slightly lowered as well.
Who Cannot participate in FSA?
According to IRS guidelines, anyone with two percent or more ownership in a schedule S corporation, LLC, LLP, PC, sole proprietorship, or partnership may not participate.
Can you use FSA to pay old medical bills?
No, you can only use this year's FSA funds to pay for an eligible expense incurred during this year, even if you have a payment plan going beyond this year.
Can FSA be used for dental?
You can use funds in your FSA to pay for certain medical and dental expenses for you, your spouse if you're married, and your dependents. You can spend FSA funds to pay deductibles and copayments, but not for insurance premiums.
Can I use FSA for glasses?
You can use your FSA funds for eye exams and prescription glasses. You can also use them for prescription contact lenses. And prescription sunglasses are FSA-eligible, too.
Can you use FSA for vitamins?
Are vitamins FSA/HSA eligible? You want to be careful when trying to buy vitamins with your FSA or HSA. They are not always deemed a qualified expense. If your vitamins are not prescribed by a healthcare professional or used to treat a specific condition, your purchase most likely won't be FSA or HSA eligible.
Is there a downside to FSA?
Use-it-or-lose-it refers to an IRS requirement that if you do not spend all the money you have elected into your account, that money remaining in an FSA after March 15 of the following year will be forfeited because it cannot be rolled over or refunded to you.
Can I cash out my FSA?
You can't withdraw money from an ATM
One of those is that the money can only be spent on FSA-eligible expenses. The easiest way to be sure your purchases are eligible is to shop at a store that exclusively sell FSA-eligible items (hint: FSAstore.com).
Can I pay for massage with FSA?
Massage Therapy may be eligible for reimbursement with a Letter of Medical Necessity (LMN) with flexible spending accounts (FSA), health savings accounts (HSA) and health reimbursement arrangements (HRA).