Can You Have an HSA in the Same Year as You Start Medicare?

As you start thinking about Medicare and your health care options, you may be wondering if you can still have a Health Savings Account (HSA) in the same year. The short answer is - it depends.

If you are enrolled in Medicare, you can no longer contribute to your HSA. However, if you already have an existing HSA balance, you can still use it to pay for qualified medical expenses. This means that you can continue to enjoy the tax advantages of your HSA even after enrolling in Medicare.

It's important to note that if you continue working past the age of 65 and delay enrolling in Medicare, you can still contribute to your HSA as long as you have a high deductible health insurance plan. Once you do enroll in Medicare, you will need to stop contributing to your HSA, but you can still use the funds you have saved up.

As you embark on your journey toward Medicare, it's natural to question if you can still maintain a Health Savings Account (HSA) during this transition. The answer is nuanced—enrollment in Medicare means no new contributions to your HSA, yet if you've been diligently saving in your account, those funds remain available for qualified medical expenses.