If you have set up a Health Savings Account with a high deductible insurance plan, after you turn 65 the HSA can actually take on the characteristics of a traditional IRA. You can withdraw money from the plan to pay for anything and the withdrawal is taxable, but there are no longer any penalties for using the money for non-medical expenses. See this article in the Wall Street Journal by Peter S. Green for more details:

http://online.wsj.com/articles/health-savings-accounts-can-double-as-shadow-iras-1401481345

In this situation it would be wise to treat the HSA as more of a supplemental IRA – there may be more advantages to continue to pay for medical expenses tax free than pay tax on the distributions. You need to look at your situation and see what works best for you. Also remember that your penalty free start time goes from 59 1/2 to 65 with the HSA.

For financial, accounting and tax musings,