Health Savings Account Withdrawals
We have a client that would like to know if HSA withdrawals are qualified to be taken out to pay Medicare.
They are age 65 and still working.
We have a client that would like to know if HSA withdrawals are qualified to be taken out to pay Medicare.
They are age 65 and still working.
Permalink Submitted by William Tuttle on Fri, 2016-06-10 22:28
Medicare Part B and Part D premiums, but not Medicare Supplement premiums are HSA qualified withdrawals.Also make sure the client is not still making HSA contributions even though they are still working. Once you are enrolled in Medicare (any Part) you are no longer eligible to make HSA contributions. Also, if you enroll in Medicare after 65, your enrollment is automatically retroactive up to six months, but not earlier than 65.
Permalink Submitted by Eduardo Arenas on Tue, 2016-06-14 13:44
A daugther receives a life insurance proceeds from her mother. When the mother pass away she has an outstanding balance on her credit card and the credit card in her name only. Does the daughter has an obligation to pay the mother’s credit card debt? Please advise.
Permalink Submitted by Alan - IRA critic on Tue, 2016-06-14 18:33
The debt must be paid out of any assets in mother’s estate, but life insurance proceeds do NOT go through the estate, so the daughter is not legally obligated to pay off the CC debt from the life insurance proceeds. However, if there are assets such as real estate or savings accounts, the executor of mother’s estate must use those assets to pay off the debts of the estate. Note that inherited retirement accounts are treated the same way as life insurance as they do not go through the estate unless the owner failed to name a beneficiary.