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My HSA account has accumulated quite a large amount of money. I have never used it at all. I figured I would avoid using it as long as possible, using my taxable account for as long as possible, in order to allow the HSA account to grow tax free. I figure as long as I have money in my taxable account, I'll leave my IRA accounts untouched so I don't have to pay tax on the withdrawals.

I just turned 65.

Is there any reason to start using HSA funds sooner than my above plan? After age 65, is there a reason to ONLY use the funds for medical purposes? I just read:
"After you reach age 65 or if you become disabled, you can withdraw HSA funds without penalty, but the amounts withdrawn will be taxable as ordinary income if not used for qualified medical expenses."
So if I use the funds for medical purposes, it is NOT taxed as ordinary income. How is it taxed if used for medical purposes?

And finally, can I wait until I am older and my taxable account is dwindled further and then withdraw the funds to reimburse myself for decades of medical expenses I've been paying out of my taxable account?

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