Can I Contribute to an HSA Until I Get Medicare?

Yes, you can contribute to a Health Savings Account (HSA) until you enroll in Medicare. An HSA allows individuals to save money for medical expenses tax-free. Here's some key information you need to know:

1. Eligibility: To contribute to an HSA, you must be enrolled in a high-deductible health plan (HDHP) and not be enrolled in Medicare.

2. Contribution Limits: In 2021, the maximum contribution limit for an individual is $3,600 and $7,200 for a family. If you are 55 or older, you can make an additional catch-up contribution of $1,000.

3. Timing: You can contribute to your HSA until the month you enroll in Medicare. Once you enroll in Medicare, you are no longer eligible to contribute to your HSA, but you can still use the funds for qualified medical expenses tax-free.

4. Coordination with Medicare: If you delay enrolling in Medicare and continue contributing to your HSA, be sure to stop contributions six months before you plan to enroll in Medicare to avoid any tax penalties.

5. Benefits of HSA: Having an HSA provides a triple tax advantage - contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are also tax-free.

Absolutely! You can continue to contribute to a Health Savings Account (HSA) right up until the moment you enroll in Medicare. This is an excellent way to save for future medical expenses with tax benefits!