Can Retirees Contribute to HSA? - Important Facts You Need to Know

As people transition into retirement, many wonder if they can continue contributing to a Health Savings Account (HSA). The short answer is yes, retirees can contribute to HSA under certain conditions. Here's what you need to know:

Retirees can only contribute to an HSA if they have a High Deductible Health Plan (HDHP) and are not enrolled in Medicare.

Once enrolled in Medicare, individuals are no longer eligible to contribute to an HSA. However, if you delay enrolling in Medicare and continue with your HSA-eligible HDHP, you can keep contributing to your HSA until you enroll in Medicare.

Retirees who are 65 years or older can still use the funds in their HSA to pay for qualified medical expenses tax-free, even if they are enrolled in Medicare.

Important Eligibility Criteria for Retirees:

• Must have an HSA-eligible HDHP
• Not enrolled in Medicare
• Retirees can contribute up to the annual HSA contribution limits set by the IRS
• HSA funds can be used tax-free for qualified medical expenses at any age

In retirement, many individuals are eager to understand their financial options, especially regarding Health Savings Accounts (HSAs). Yes, retirees can indeed contribute to an HSA, but there are specific guidelines to follow to make the most out of this benefit.