Can I Contribute to My HSA the Year I Go on Medicare?

One common question many people have is whether they can contribute to their HSA (Health Savings Account) in the year they transition to Medicare. The answer to this question is dependent on several factors that need to be considered before making a decision.

First and foremost, it's important to understand that individuals cannot contribute to an HSA if they are enrolled in Medicare. Therefore, if you are planning to enroll in Medicare during the year, you will not be able to make contributions to your HSA for that year. Here's a breakdown of how the transition to Medicare may impact your HSA contributions:

• If you enroll in Medicare mid-year, your HSA contribution limit will be prorated based on the number of months you were eligible to contribute to the HSA.
• If you are enrolled in Medicare for the full year, you are not eligible to contribute to the HSA for that year.

It's important to note that once you enroll in Medicare, you can still use the funds in your HSA to pay for qualified medical expenses. However, you cannot make new contributions to the account while you are enrolled in Medicare.

Many people wonder about HSA contributions when transitioning to Medicare. If you're entering Medicare this year, remember you can't contribute to your HSA once enrolled. However, understanding how this affects your financial plans is crucial.