How Much Money Can I Put Into an HSA When I Get Medicare in May?

When you transition to Medicare in May, your Health Savings Account (HSA) may be impacted in terms of how much money you can contribute. Medicare participants are no longer eligible to make contributions to an HSA. However, you can still use the funds already in your HSA to pay for qualified medical expenses tax-free, even after enrolling in Medicare.

It's important to consider how your HSA will align with your Medicare coverage. Here are some key points to keep in mind:

• Once you enroll in Medicare, you can no longer contribute to your HSA.
• You can still use the funds in your HSA for qualified medical expenses tax-free.
• If you are still working and covered by an HSA-qualified high deductible health plan (HDHP), you can continue to contribute to your HSA until you retire or are no longer covered by an HDHP.
• If your employer contributes to your HSA, those contributions will be subject to Medicare tax if you are enrolled in both Medicare and an HDHP.
• Medicare does not cover long-term care expenses, so you can use your HSA funds for these expenses even after enrolling in Medicare.

As you transition to Medicare in May, it's crucial to understand how this affects your ability to contribute to your Health Savings Account (HSA). Once enrolled in Medicare, you’ll no longer be able to make contributions, but don’t worry—you can still use your HSA funds for qualified medical expenses tax-free.