Can a Self Employed Spouse Contribute to My HSA If I Am Still Working but on Medicare Part A?

Many individuals wonder about the rules surrounding Health Savings Accounts (HSAs) and whether a self-employed spouse can contribute to their HSA if they are still working but on Medicare Part A. Let's delve into this topic to provide clarity on the matter.

Firstly, if you are enrolled in Medicare Part A, you are considered to have coverage under a healthcare plan that disqualifies you from contributing to an HSA. As a result, while you can maintain your existing HSA and use the funds for qualified medical expenses, you cannot make new contributions to the account.

However, the rules are different for your self-employed spouse. A self-employed individual can contribute to their own HSA as well as the HSA of their spouse, given that the spouse is not on Medicare and meets the eligibility criteria for an HSA.

When it comes to contribution limits, for 2021, individuals can contribute up to $3,600 to an HSA, while families can contribute up to $7,200. Individuals aged 55 and older can make an additional catch-up contribution of $1,000.

It's essential to stay informed about HSA regulations and consult with a financial or tax advisor to ensure compliance with the rules. By understanding the nuances of HSA contributions, you can maximize the benefits of these accounts for healthcare expenses.

Many individuals ask whether a self-employed spouse can contribute to their HSA while the other spouse is employed and enrolled in Medicare Part A. Unfortunately, if you're on Medicare Part A, you cannot contribute to your HSA, but your spouse may still be eligible to contribute to their own HSA and yours if you’re not on Medicare.