32 thoughts on “HSA and Medicare: How to Avoid an IRS Penalty

  1. HSAs can be tricky when you are eligible for Medicare! Do you have a question about contributions? Type it here and we’ll answer.

  2. Just to be clear, if a husband is the one with an HSA and his wife is on his insurance, if the wife got Medicare, the husband can still contribute to his own HSA?

  3. My husband turned 65 last year. I will be 65 in June this year. He delayed Part A so we could both stay on his employer’s HSA plan. Can we deposit the yearly 2019 maximum HSA contribution now, and then both go onto Medicare later in the year? Do we have to wait 6 months after our last contribution to the HSA? Since we are covered by the employer’s plan, do I have to go on Medicare 3 months after my birthday, or can I start it anytime? Thank you for your help.

    • Yes, he can contribute the family maximum. You will just want to not contribute into the HSA at least 6 months before you guys enroll in Medicare. You can delay enrolling in Medicare until you lose his employer coverage. Fast forward to 4:40 in the video for a refresher on your situation. You can also visit the IRS website for more information.

    • Thank you much. And am I correct that because we are covered by his work plan, we don’t have to enroll in Medicare within that 3 month window before and after our birthdays? We can enroll, say 5 months later, or whenever we discontinue his employer’s coverage even though he will continue to work?+Boomer Benefits

  4. First of all thanks for your videos! Turned 65 first of this month and plan on working until end of 2020. Have HSA so need to stop contributions by end of June 2020, right? And do I need to contact SS for anything about delaying medicare Parts A & B?

  5. Very interesting – thinking about retiring early, right now in an HSA/high deductible plan. The comment about enrolling in SS triggering part A made me woner- if i enroll early (at 63) for SS, does that mean I’m covered under Medicare at that time? i thought that was not an option until 65.

    • No. You can not get Medicare until you are at least 65 (unless you are disabled). However, once you turn 65, you will be auto enrolled in Medicare if you already have SS benefits.

    • Just to clarify, enrolling in SS early does NOT trigger Medicare? I want to be sure I understand any impacts on insurance choices I make between retirement and Medicare age. Thanks!

    • +laurab0605 Correct, you are not eligible for Medicare until 65 unless you qualify early due to a disability for which you are receiving SS disability income benefits

  6. I know that Medicare premiums can be paid with an HSA. Somewhere I read that you had to personally pay the premiums and then reimburse yourself from your HSA account. Is that true and if it is, why would that be necessary? Can I just set up my premiums to come directly out of my HSA account? And I don’t plan on taking SSI benefits yet- once I do, will the premiums automatically come out of my SSI montly benefit?

    • If you aren’t taking SSI yet, then normally SS bills you quarterly for your Part B premiums, so in that case you would reimburse yourself. However you can also call SS to set up monthly autodraft of your Part B premiums and yes you could do that from your HSA bank account if your bank allows it. When you later sign up for SSI, they will revert to taking that monthly from your SS check, and in that case you could again reimburse yourself.

  7. I have what I believe is a HSA through my employer, but it seems mine is a little different. I select how much I want to put in the account in November, then come January the money is available. This year the max was $2550.00 that amount goes on a credit card Jan. 1st and we can use any or all any time. My company then deduct that amount from 26 pays, it is not taxed. Any money left in the account come 12/31 is forfeited. Is this type account different from what you were talking about in the video?

    • Hi Paul, that sounds like an FSA, which is a type of account that doesn’t roll over each year and doesn’t require you to first have a high deductible heatlh plan like the HSA would.

  8. I’m on my wife’s work insurance and plan to stay on it until she retiers. I know that I can go on medicare at that time. My question is are the supplemental insurances required to accept me for the 6 month timeline? I might also add I’m already getting SS starting at 62.5 years.
    Thanks, Bob

    • HI Robert, if your wife works for a company with at least 20 employees, you can delay enrollment into Medicare Part B until you retire and then your Part B effective date triggers the 6 month Medigap window

  9. I also need to know since I’m on my wives work insurance do I need to send a notice to someone to delay Part A?
    Thanks, Bob

  10. Great information! Information is power, and you’re helping a lot of senior citizens take the power back with making their healthcare decisions! This could save people a lot of money and headache!

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