Can You Have an HSA for Part of the Year Without Medicare?

Many people wonder if they can have an Health Savings Account (HSA) for part of the year without Medicare coverage. The answer is yes, but with conditions. An HSA can be set up when you have a High Deductible Health Plan (HDHP) and are not enrolled in Medicare. Here's what you need to know:

Highlights:

• An HSA can be maintained for part of the year as long as you meet the eligibility criteria.
• If you enroll in Medicare, you can no longer contribute to your HSA, but you can still use the funds for qualified medical expenses.
• Once you enroll in Medicare, you have the option to suspend your HSA contributions or use the remaining balance for eligible expenses.

Having an HSA for part of the year without Medicare can be beneficial, as it allows you to save for medical expenses while enjoying tax advantages. If you are considering this option, make sure to understand the rules and implications.

Yes, you can have a Health Savings Account (HSA) for part of the year if you do not have Medicare coverage. To set up an HSA, ensure you’re enrolled in a High Deductible Health Plan (HDHP). This allows you to save money for qualified medical expenses with tax benefits.