So, frankly, after age 65, you can essentially withdraw HSA funds for anything. Even though you will pay less in premiums with the HDHP, it could be difficult—even with money in an HSA—to come up with the cash to meet the deductible for a costly medical procedure. To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research. These products and services are usually sold through license agreements or subscriptions. The FSA is also a “tax-favored plan” but it is relatively limited in its usefulness. Withdrawals from an HSA are tax-free provided the money is used to pay for qualified medical expenses.The federal government limits who can open an HSA, how much you can contribute, what you can use the money for and more. A guide to HSA rules An HSA is a tax-advantaged . Except in cases where employers allow for a “limited purpose” FSA (LPFSA), you cannot have both an HSA and FSA. Keep in mind that an LPFSA can only be used to cover . 1. You might be able to super save in your HSA as a young adult HSA’s annual contribution limit is set by the IRS each year and can vary depending on how many dependents are .