HSA Contribution after age 65

Submitted by MIKE KRUCHTEN on Wed, 2021-08-18 19:28

Client turns 65 on Dec 1, 2021 and is covered under a group health plan which is a HDHP. She is not collecting SS nor plans to until her retirement from the company(age 68) and employer doesn’t require her to jump on Medicare at 65. Her intent is to stay on group HDHP until her retirement at age 68.

My understanding is she can continue making full HSA contributions up to Medicare start month. Assuming it’s age 68 she could make a full contribution in 2021, 2022, 2023 and pro rata in 2024 (11 month worth) under current law.

Any input if my assumption is accurate??



Submitted by Alan - IRA critic on Thu, 2021-08-19 00:12

Yes, that is correct.

Submitted by William Tuttle on Thu, 2021-08-19 02:26

If you enroll in Medicare after age 65, there is a mandatory automatic up to six month retroactive enrollment, but not earlier than age 65. If she enrolls in Medicare at age 68, she will be automatically retroactively enrolled in Medicare at age 67 1/2. She will be HSA ineligible at that time.

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