Medicare with HSA
I’m going to keep working until 70 I have an HSA that I like. I will be 65 Nov 19th this year 2024. If I sign up for Medicare I can’t contribute to my HSA even If I don’t use Medicare. I will have my own insurance until 70. Will I be penalized if I do not sign up for Medicare this year. this is so confusing.
Terry Says
As long as you have full comparable coverage at work, you do not need to sign up for Medicare. You’re correct, that even if you sign up for the free Part A, you can no longer contribute to your HSA.
BUT, just two months before you retire, you should sign up for Original Medicare and a supplement and Part D for drugs (even if you do not take any drugs at that time). You cannot be turned down for the “G” supplement if you sign up at the same time as you move to Medicare, regardless of health.
Do all that at Medicare.gov — the initial signup, the supplement and the Part D.
Make sure it starts the beginning of the month you retire, so there is no gap in coverage.