You can make HSA withdrawals for qualified medical expenses at any time without having to pay any taxes. You can also save the funds in your HSA to help fund medical expenses in your retirement. After you turn 65 years old, you can begin using your HSA funds for other expenses without paying a 20% penalty. If you take money out of your 401(k) before turning age 59½, it is considered an early withdrawal, which usually comes with financial penalties. After you reach 59½, you can begin taking withdrawals without penalties.