Can I Contribute to HSA if I Turn 65 That Year?

When it comes to contributing to your Health Savings Account (HSA), turning 65 can have an impact on your eligibility and contribution limits. If you are wondering whether you can still contribute to your HSA after turning 65, the answer is yes, but with some caveats.

Here is what you need to know:

• Once you enroll in Medicare, whether at age 65 or later, you can no longer contribute to your HSA on a pre-tax basis.
• However, you can still withdraw funds from your HSA tax-free to pay for qualified medical expenses, including Medicare premiums, copays, and deductibles.
• If you delay enrolling in Medicare and continue to have a high-deductible health plan (HDHP), you can keep contributing to your HSA until you enroll in Medicare.
• Once you enroll in any part of Medicare, including just Part A for hospital coverage, you are no longer eligible to contribute to your HSA on a pre-tax basis.
• It's essential to be mindful of the contribution limits and any changes in your eligibility as you approach the age of 65 and become eligible for Medicare.

Even if you cannot contribute to your HSA on a pre-tax basis after enrolling in Medicare, your existing HSA funds remain available for tax-free withdrawals for qualified medical expenses at any age.

Turning 65 is a significant milestone, but when it comes to your Health Savings Account (HSA), there's a lot to consider. While you can still contribute to your HSA up until you enroll in Medicare, it's crucial to understand how this transition affects your contributions.