Can I Contribute to an HSA the Year I Start Medicare?

Many people wonder if they can continue contributing to their Health Savings Account (HSA) once they start Medicare. The short answer is, no, you cannot contribute to an HSA once you are enrolled in Medicare. However, there are some details and exceptions to consider.

When you enroll in Medicare, which usually happens when you turn 65, you are no longer eligible to contribute to an HSA. Medicare is considered disqualifying health coverage for HSA contributions, so you cannot make new contributions to your HSA once you enroll in Medicare.

Even if you delay enrolling in Medicare past age 65, but are already receiving Social Security benefits, you cannot contribute to an HSA. Once you start receiving Social Security benefits, you are automatically enrolled in Medicare Part A, which means you are no longer eligible to contribute to an HSA.

It's important to note that while you cannot make new contributions to your HSA once you start Medicare, you can still use the funds in your existing HSA to pay for qualified medical expenses. Your HSA funds never expire, so you can continue using them even after you are enrolled in Medicare.

Here are some key points to remember:

• Enrolling in Medicare makes you ineligible to contribute to an HSA.
• Receiving Social Security benefits automatically enrolls you in Medicare, affecting your HSA eligibility.
• You can still use existing HSA funds for qualified medical expenses even after starting Medicare.

Many individuals approaching retirement age often question if they can keep adding to their Health Savings Account (HSA) after starting Medicare. The simple answer is no, as enrollment in Medicare disqualifies you from making further contributions to your HSA.