HSA and Medicare
My husband and I are both working. He will turn 65 at the end of September, and I October. We will not be collecting social security until at least full retirement age. We have insurance through his employer (over 20 employees). I was going to sign us up for Medicare Part A, but just discovered we should have stopped contributing to his HSA 6 months ago. Should we stop the contributions now and sign up for Part A in 6 months to avoid a tax penalty on the HSA contributions? If we wait 6 more months to sign up for Part A will we be penalized for signing up late? Is there a better way to proceed, given the circumstances?
Thank you!
Terry Says
As long as you are fully covered for insurance you don’t have to sign up for Part A — until he retires! Don’t sign up! Then you can keep contributing to the HSA!
But as soon as he retires, you each need to go to Medicare.gov to sign up for Part A, Part B, Part D (drugs, even if you are not taking any) and also a supplement (G). Don’t leave a gap, and don’t take COBRA, even if it is offered.
All this assumes your current employer-paid insurance does not require Part A once you turn 65.
