Can You Make Full HSA Contributions in the Year You Turn 65?

Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.

HSA contributions around Medicare enrollment age

As you're nearing retirement age, you may wonder if you can still make full HSA contributions in the year you turn 65. Health Savings Accounts (HSAs) are a valuable tool for saving money for medical expenses while enjoying tax advantages. However, there are some rules and considerations to keep in mind regarding HSA contributions when you reach age 65.

When you turn 65, you become eligible for Medicare, which is a government healthcare program primarily for seniors. Once you enroll in Medicare, you can no longer contribute to an HSA because you are no longer covered by a high-deductible health plan (HDHP). However, if you delay enrolling in Medicare and continue to have an HDHP, you can still make full HSA contributions for that year.

Using HSA funds after Medicare starts

It’s important to note that even if you can’t contribute to your HSA after enrolling in Medicare, you can still use the funds in your HSA to pay for qualified medical expenses tax-free, including Medicare premiums, copays, deductibles, and more. Your HSA can continue to benefit you in retirement by providing a source of tax-free funds for healthcare costs.

Rules for contributing through the year

If you're approaching your 65th birthday, you might be asking yourself about the rules governing Health Savings Accounts (HSAs) and what remains possible in that pivotal year. Turning 65 means you will be eligible for Medicare, but here’s what you should know: if you continue with your high-deductible health plan (HDHP), you can still contribute to your HSA for the entire year before you enroll in Medicare, maximizing your savings for future medical expenses.