How Much Can You Deposit into an HSA the Year You Turn 65?

When it comes to health savings accounts (HSAs), many individuals wonder about the contribution limits, especially as they near retirement age. As you turn 65, there are some important considerations to keep in mind regarding HSA contributions.

HSAs are a valuable financial tool that allow individuals to save for medical expenses tax-free. These accounts are often associated with high-deductible health plans and offer various tax benefits. However, there are specific rules governing HSA contributions, including contribution limits based on age.

For individuals aged 55 and older, there is an additional catch-up contribution allowed, which is set by the IRS. But what about the year you turn 65?

As you turn 65, your HSA contribution limit changes based on your eligibility for Medicare. Here’s what you need to know:

• If you are still eligible for an HSA and enrolled in a high-deductible health plan, you can continue to make contributions up to a prorated amount for the year you turn 65.
• If you enroll in Medicare, your HSA contribution limit changes. You can no longer contribute to your HSA once you are enrolled in Medicare. However, you can still use the funds in your HSA for qualified medical expenses tax-free.

It's essential to understand the rules and limitations surrounding HSA contributions, especially as you approach age 65. Consult with a financial advisor or tax professional to ensure you are making the most of your HSA benefits.

As you approach age 65, understanding the contribution limits for your health savings account (HSA) is crucial. The ability to continue making contributions can impact your financial planning significantly.