Can I Contribute to HSA if I'm on Medicare Part Year?

If you are on Medicare part year, you can contribute to an HSA as long as you meet certain eligibility criteria. Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. Here are a few key points to keep in mind:

• Medicare Part A and Part B coverage does not disqualify you from contributing to an HSA.
• However, if you are enrolled in Medicare Part D or any other Medicare Advantage plan, you are no longer eligible to contribute to an HSA.
• If you are on Medicare for only part of the year, you can contribute to your HSA for the months you are not enrolled in Medicare.
• It's important to pro-rate your contributions based on the number of months you are eligible to contribute.
• For 2021, the annual contribution limit for individuals is $3,600 and $7,200 for families.

It's essential to understand the rules and regulations surrounding HSAs and Medicare to make informed decisions about your healthcare savings. Consult with a financial advisor or tax professional for personalized guidance based on your specific situation.

If you’re on Medicare for part of the year, you may be wondering about your ability to contribute to a Health Savings Account (HSA). The good news is that you can still make contributions, provided you meet specific eligibility criteria. Remember, HSAs are an incredible way to save for medical expenses while taking advantage of tax benefits!