HSA contribution after age 65
Client is age 72 and had been continuously working into summer this year. She had not enrolled in Medicare as she had a HDHP provided through her employer. My understanding is once someone enrolls in Medicare, they are no longer eligible to make HSA contributions, is that correct? If so, since the client did not enroll until August 1st 2020, can she make pro-rated contributions to her HSA for January through July?
Permalink Submitted by David Mertz on Thu, 2020-12-10 01:25
Applying on August 1, 2020 would result in her Medicare Part A coverage beginning February 1, 2020, 6 months prior to the application date, so her maximum HSA contribution for 2020 would be for January only, 1/12 of the annual maximum. See “I’m currently working” on the following Medicare webpage: https://www.medicare.gov/sign-up-change-plans/how-do-i-get-parts-a-b/should-i-get-parts-a-b