i’m the parent. You are correct, my mistake! It’s too late to edit at this point. :(
What I should have said is that after 65 you can spend it on non medical stuff without penalty. BUT if you do so you’ll owe tax that year (withdrawal).
So to summarize, you can avoid all tax if it’s spent on medical stuff. For non medical (post 65) it’s still good, but not as good.
Still an amazing deal because old people tend to spend a lot more on healthcare.
What I should have said is that after 65 you can spend it on non medical stuff without penalty. BUT if you do so you’ll owe tax that year (withdrawal).
So to summarize, you can avoid all tax if it’s spent on medical stuff. For non medical (post 65) it’s still good, but not as good.
Still an amazing deal because old people tend to spend a lot more on healthcare.