What happens to the money in my HSA after I turn 65 and enroll in Medicare?

You can continue to use your account for qualified out-of-pocket medical expenses. Funds can also be used to pay for deductibles, co-pays and coinsurance after you are enrolled in Medicare.  

The purchase of a Medicare supplemental insurance policy is not considered a qualified expense.

After you turn 65, you are allowed to use the money in your HSA for non-medical expenses. If you choose to do so, the amount withdrawn will be treated as income. It is subject to income tax but not to penalties.