Can I Put Money into HSA on Medicare? A Comprehensive Guide

Are you wondering if you can contribute to your Health Savings Account (HSA) while being on Medicare? This question arises for many individuals who are transitioning to Medicare but want to continue saving for their healthcare expenses. Let's dive into the details to understand how HSAs and Medicare can work together.

Understanding HSAs

An HSA is a tax-advantaged savings account for individuals covered by a High Deductible Health Plan (HDHP). It allows you to save money for qualified medical expenses with contributions that are tax-deductible.

Can You Contribute to HSA on Medicare?

Once you enroll in Medicare, whether Part A, Part B, or both, you are no longer eligible to contribute to an HSA. Medicare coverage makes you ineligible to open or contribute to an HSA according to IRS rules.

What If You're Already on Medicare and Have an HSA?

If you already have an HSA before enrolling in Medicare, you can keep the account and continue to use the funds for qualified medical expenses tax-free. However, you cannot make new contributions to the HSA once you are on Medicare.

Other Considerations

• If you're still eligible for an HSA but have a spouse on Medicare, you can contribute to a family HSA account if the spouse is under 65 and not enrolled in Medicare.
• Once you turn 65 and enroll in Medicare, you can use your existing HSA funds for non-medical expenses without penalty but will be taxed on the distributions.

The moment you enroll in Medicare, you might find yourself asking, 'Can I still contribute to my HSA?' Unfortunately, the answer is no. Once you sign up for any part of Medicare, you lose eligibility to contribute to your Health Savings Account (HSA) due to IRS regulations.