Enrolling in Medicare can impact your Health Savings Account (HSA) eligibility and contributions. Once you enroll in Medicare, whether Medicare Part A or Part B, you are no longer eligible to contribute funds to your HSA. This means that you cannot make new contributions to your HSA, even if you have another health plan that is HSA-eligible. However, you can still use the existing money in your HSA to pay for some Medicare costs. It’s important to note that if you delay enrolling in Medicare and continue to contribute to your HSA, you should stop contributing six months before your Medicare coverage begins to avoid potential tax penalties.
Additionally, if you have employer-sponsored health insurance and are enrolled in a High Deductible Health Plan (HDHP) with an HSA, you may have to coordinate your HSA contributions with Medicare. It’s advisable to consult with your employer’s benefits department or a financial advisor for personalized guidance based on your specific situation.
Please keep in mind that this is a general overview, and individual circumstances may vary. It’s recommended to consult with a qualified tax advisor or financial professional for personalized advice on how enrolling in Medicare may specifically affect your HSA.
If you have any questions, please connect with one of our Medicare experts.