Can You Contribute to an HSA the Year You Go on Medicare?

When it comes to Health Savings Accounts (HSAs) and Medicare, there are some rules and restrictions that you need to be aware of in order to make informed decisions about your healthcare savings.

An HSA is a tax-advantaged account that allows individuals to save money for qualified medical expenses. It offers tax benefits and can be a valuable tool for managing healthcare costs.

However, once you enroll in Medicare, there are certain limitations on your ability to contribute to an HSA. Here are some key points to consider:

• If you are enrolled in Medicare, you are no longer eligible to contribute to an HSA.
• Medicare Part A, Part B, or Part D enrollment makes you ineligible to make contributions to an HSA.
• If you are already receiving Social Security benefits, you will automatically be enrolled in Medicare when you turn 65, which means you can no longer contribute to an HSA.
• If you delay enrolling in Medicare and are still covered by a high-deductible health plan (HDHP) and are not receiving Social Security benefits, you can continue to contribute to an HSA.

In summary, if you are on Medicare, you cannot contribute to an HSA. Understanding the rules and limitations can help you plan ahead and make the most of your healthcare savings.

As you approach retirement age, it's important to understand the impact of Medicare on your Health Savings Account (HSA) contributions. The HSA is an incredible tool for healthcare costs, but your ability to contribute changes once Medicare enrollment begins.