Can You Contribute to an HSA Plan When Enrolled in Medicare?

Enrolling in Medicare can bring up questions regarding how it may impact your Health Savings Account (HSA) contributions. Let's address the common query: can you contribute to an HSA plan when enrolled in Medicare?

When you become eligible for Medicare, whether through age or disability, your ability to contribute to an HSA changes. Here are some key points to consider:

• When you enroll in Medicare, you are no longer able to contribute to your HSA. This means you cannot make new contributions to the account.
• However, if you had an HSA before enrolling in Medicare, you can still use the funds in the account for qualified medical expenses.
• If you are still working and covered by an HSA-qualified high deductible health plan (HDHP), you can continue to contribute to your HSA. But once you enroll in any part of Medicare, including Part A, you can no longer contribute to the HSA.
• If you delay enrolling in Medicare and continue working past age 65 with employer-sponsored health insurance, you may be able to postpone enrolling in Medicare and continue contributing to your HSA.

It's essential to understand the rules surrounding Medicare and HSAs to make informed decisions about your healthcare and retirement planning. If you have specific questions regarding your situation, it's advisable to consult with a financial advisor or tax professional.

Understanding the relationship between Medicare enrollment and your Health Savings Account (HSA) contributions is crucial for effective financial planning. When you enroll in Medicare, your ability to add funds to your HSA is affected.