Health Savings Accounts Part 6

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January 26, 2018
Health Savings Accounts Part 6

Image Copyright Ted Grussing Photography – Used with permission

Today we will complete our discussion on HSA’s or Health Savings Accounts. This last segment will focus on HSA’s and their relationship to Medicare.

First off, it’s important to note that IRS rules say you cannot contribute to an HSA if you are already enrolled in Medicare. If you already have an HSA you can still draw on funds already in the account, you just cannot add to them. However, if you have an HSA with your employer and intend to work past age 65 there may be some other options open to you:

  • “If your employer has 20+ employees, you have the right to postpone applying for Social Security and Medicare” you can continue to contribute to your HSA until you retire (Barry).

Say you are under your spouse’s HSA at work

  • If you already signed up for Part A you can withdraw your application. There are not any penalties for doing so and you can reapply at a later date (To do this call the Social Security Administration at 1-800-772-1213.)
  • If you are receiving Social Security benefits you cannot keep contributing to your HSA.
    • You can get out of part A, but you must pay back all money you received in Social Security payments and Medicare medical claims.
    • You can reapply for Social Security and Medicare later down the road.

This concludes our segments on Health Savings Accounts. Keep in mind that situations differ and not everyone will qualify for a Heath Savings Account plan. Check with your employer and your tax adviser, or use an online tool or research to learn about your options. You must get with a qualified HSA trustee in order to set up a plan for yourself.

Do not take our word for it. Do your research to see if an HSA is right for you!

Have a great weekend!

Sources:

Barry, P. (2016, October). Health Savings Account Contribution – Medicare Entitlement. Retrieved from https://www.aarp.org/health/medicare-insurance/info-04-2009/ask_ms_medicare_question_53.html