Ask Terry Questions HSA contribution before Medicare

HSA contribution before Medicare

By Terry Savage on July 02, 2024 | Insurance & Annuities

I am turning 65 in August and have signed up for Medicare. Can I still contribute to my HSA for the months of January through July. If I divide $4150.00 divided by 12 it’s about $345. So, $345.00 x 7= $2145.00.

Terry Says

I’m not an expert at this, but below is the rule that I think must apply — and it would seem to disqualify you for contributions earlier this year!  The one excuse might be that you actually MADE the contribution BEFORE reaching age 65 — which you obviously still have time to do immediately (based on the below).  And who knows if they would catch this kind of pre-payment and give you a penalty.  Here’s the rule:

There is a six-month lookback period (but not before the month of reaching age 65) when enrolling in Medicare after age 65, so a best practice is for workers to stop contributing to their HSA six months before the month they apply for Medicare to avoid penalties. Note that the month of application is what is used to calculate the six-month lookback, not the month the applicant wishes to begin benefits. See the examples below for more on this

The source of the above:  Medicare’s tricky rules on HSAs after age 65 – Journal of Accountancy



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