HSA Contribution Rules for Medicare Enrollees – Ask the Hammer: In this episode of “Ask the Hammer,” Jeffrey Levine of Buckingham Strategic Wealth tackled the complex issue of Health Savings Account (HSA) contributions for individuals enrolled in Medicare. Levine explained that once enrolled in Medicare, individuals are no longer eligible to contribute to an HSA. This restriction is due to Medicare being classified as non-qualifying coverage for HSA contributions.
The discussion was prompted by a listener’s question concerning their ability to continue HSA contributions after enrolling in Medicare in July, with contributions made from January to June. Levine detailed that contributions should be prorated based on the months of eligibility before Medicare enrollment. For instance, if enrolled in Medicare from July, only contributions for January through June count towards the annual HSA limit.
Levine also highlighted the “six-month look-back” rule, which affects those who delay Medicare enrollment. Under this rule, Medicare Part A coverage can retroactively begin six months from the enrollment date but not earlier than the 65th birthday. This rule is crucial for determining the precise cutoff for HSA contributions.
This episode underscores the importance of understanding the specific timing and rules around HSA contributions in relation to Medicare enrollment to avoid penalties for excess contributions. Levine’s insights help demystify these rules, providing valuable guidance for listeners navigating the intersection of HSAs and Medicare.Got questions? Email: [email protected]
Watch this video to learn about HSA Contribution Rules for Medicare Enrollees and catch more Ask The Hammer episodes at this link: https://www.finstream.tv/videos/ask-the-hammer/