From travel insurance to fraud protection, AARP has you covered. Take a closer look at your member benefits.

 

Reply
Info Seeker
1
Kudos
540
Views
0
Replies

Funding an FSA or HSA using 401(k) or IRA funds pre-tax

540 Views
Message 1 of 1

I am retiring in a month and have been told I won't be eligible anymore for the FSA that my company currently has and I've used for many years.  While I fully expected that, it did get me thinking. Why hasn't the Governmant allowed retired people to fund a FSA or HSA using 401(k) or IRA funds pre-tax? It seems odd that at a time where my medical spending will rise and my income falls, I do not have the option to pay for any medical expesnes pre-tax as I did while employed.

 

In order to pay $10,000 in Medical bills, I have to cash in $13,000 of my 401(k). For medical expenses to be tax deductible, they'd have to be astronomical and only those expenses in excess of 10% our AGI can we even start deducting them. With an FSA the savings start with the first dollar spent. 

Report Inappropriate Content
1
Kudos
540
Views
0
Replies
cancel
Showing results for 
Search instead for 
Did you mean: 
Users
Announcements

Have a question about AARP membership or benefits? Ask it in the AARP Help Membership forum, Benefits & Discounts forum, or General forum.


multiple white question marks with center red question mark