Can I Contribute to HSA in 2019 If Medicare Starts in 2020?

Health Savings Accounts (HSAs) are a great way to save for medical expenses while enjoying tax benefits. However, when it comes to transitioning to Medicare, many people have questions about their HSA contributions. One common query is whether you can contribute to your HSA in 2019 if you are planning to start Medicare in 2020. Let's delve into this important topic to provide you with a clearer understanding.

Firstly, it's crucial to know that you cannot contribute to an HSA once you enroll in Medicare. This means that if you plan to start Medicare in 2020, your last opportunity to contribute to your HSA for 2019 would be before your Medicare coverage begins.

Now, let’s address the specific scenario of transitioning from an HSA-eligible high deductible health plan (HDHP) to Medicare:

• If you are 65 or older and enrolling in Medicare: You cannot contribute to your HSA for the months you are enrolled in Medicare.
• If you are under 65 and enrolling in Medicare due to a disability: The rules are more complex, and it's advisable to seek guidance from a tax professional to understand your eligibility to contribute to the HSA.

Keep in mind that even if you can no longer contribute to your HSA after enrolling in Medicare, you can still use the funds in your HSA to pay for qualified medical expenses tax-free. It's essential to make the most of your HSA savings while you are eligible to contribute!

Wondering if you can still enjoy the benefits of your Health Savings Account (HSA) while gearing up for Medicare? If you're considering Medicare in 2020, your HSA contributions for 2019 need to be finalized by the time you enroll. It's essential to act before your Medicare coverage catches up to you!