If married, your spouse becomes the owner of the HSA when you die. If unmarried, the HSA becomes part of your taxable estate.

The HSA account is transferred to the named beneficiary. If the beneficiary is the surviving spouse, then the account stays the same and can be used for qualified medical expenses. Any distributions that are non-qualified medical expenses are subject to income tax rules. If the beneficiary is not the surviving spouse, then the HSA ceases to be an HSA and is subject to income tax.

If you don't make a will or use some other legal method to transfer your property when you die, state law will determine what happens to your property. (This process is called "intestate succession.") Your property will be distributed to your spouse and children or, if you have neither, to other relatives according to a statutory formula. If no relatives can be found to inherit your property, it will go into your state's coffers.

After you die, your executor (the person you appointed in your will) is responsible for seeing that your wishes are carried out as directed by your will. He or she may hire an attorney to help wind up your affairs, especially if probate court proceedings are required.

Funds deposited into your HSA remain in your account and automatically roll over from one year to the next. You may continue to use the HSA funds for qualified medical expenses. You are no longer eligible to contribute to an HSA for months that you are not an eligible individual because you are not covered by an HDHP.

If you die before you begin receiving payments from SPP, the funds in your account are paid in a lump sum to whomever you have named as beneficiary. If you die after you retire, the death benefits are paid out according to the pension option selected. See our Annuity Options page for more information.

HSA plan may save you money through lower premiums, tax savings, and money deposited in your account which can be used to pay your deductible and other out-of-pocket medical expenses in the current year or in the future.

You can invest the money in your HSA in bank accounts, annuities, certificates of deposits, stocks, bonds, mutual funds, certain types of Bullion or Coins (please see section 408(m)(3) of the IRS Code). However, your HSA custodian or trustee may offer only some of these types of investments.

You can withdraw money directly from your account using your Aetna HSA debit card for qualified expenses.

If the money is used for other than qualified medical expenses, the expenditure will be taxed and, for individuals who are not disabled or over age 65, subject to a 10% tax penalty.

Your HSA contributions would pass to your surviving spouse or named beneficiary, tax-free. If you are unmarried and do not have a named beneficiary, the money is disbursed to your estate and is subject to taxes. (close) You are not required to contribute to your HSA account. However, the financial institution may require a minimum balance to maintain your HSA. (close)

the end of the year, the money not spent will simply continue to earn interest. Medical Savings Insurance pays 5% interest on any balance in the account. The interest is not taxable if you use it for medical expenses. Yes. At age 65 the HSA functions like a traditional IRA. You can withdraw money without penalty, paying only normal income taxes.

Once you're 65, funds in your HSA can be used tax free for qualified medical expenses and to pay certain insurance premiums, like Medicare Part A and Part B, Medicare HMO, and your share of retiree medical insurance premiums. (It cannot be used to purchase a Medigap plan.) If used for permitted expenses, funds come out of the account tax free. If used for other expenses, the amount used will be taxable.

Annually every retiree and survivor receiving a monthly benefit check from the Leominster Contributory Retirement Board will receive an "Annual Verification Statement" form. Each retiree/survivor must complete this form, sign and return the form to our office promptly. If this form is returned to our office by mail or delivered by someone other than the named individual, the Retiree's/Survivor's signature must be notarized by a Notary Public.