Can a Retiree Contribute to an HSA?

As retirement approaches, many individuals wonder if they can continue contributing to their Health Savings Account (HSA). The good news is that retirees are allowed to contribute to an HSA as long as they meet certain eligibility requirements.

Initially, to contribute to an HSA, one must be enrolled in a High Deductible Health Plan (HDHP). If a retiree has an HDHP, they can contribute to an HSA as long as they are not enrolled in Medicare. Once enrolled in Medicare, individuals can no longer contribute to an HSA.

Retirees over the age of 65 can still contribute to an HSA if they are not enrolled in Medicare and meet the following conditions:

• They are not claimed as a dependent on someone else's tax return.
• They do not have access to any non-HDHP coverage, such as a spouse's non-HDHP insurance.
• They meet the annual contribution limits set by the IRS.

Contributing to an HSA during retirement can provide tax benefits and help cover healthcare costs that may increase with age. It's essential for retirees to understand the rules and eligibility criteria to make the most of their HSA.

Yes, retirees can definitely contribute to a Health Savings Account (HSA) provided they are enrolled in a high-deductible health plan (HDHP) and meet other eligibility requirements. This option offers a fantastic opportunity for tax savings.