Medicare
Federal health insurance for people 65+ that ends your eligibility to contribute to an HSA.
What is Medicare?
Medicare is the federal health insurance program for people age 65 and older (and some younger people with disabilities). Enrolling in any part of Medicare - including Part A, Part B, or Part D - ends your eligibility to contribute to an HSA.
This is important because many people are automatically enrolled in Medicare Part A when they start receiving Social Security benefits. Even if you have HDHP coverage through an employer, Medicare enrollment makes you ineligible for new HSA contributions.
You can still use existing HSA funds tax-free for qualified medical expenses, including Medicare premiums (Parts B, D, and Medicare Advantage, but not Medigap). You just can't add new money to the account.
Frequently Asked Questions
Can I contribute to an HSA after enrolling in Medicare?
No. Any Medicare enrollment ends your HSA contribution eligibility. You can still use existing funds tax-free.
Can I use HSA for Medicare premiums?
Yes. Medicare Part B, Part D, and Medicare Advantage premiums are HSA-eligible. Medigap (supplemental) premiums are not.
What if I delay Medicare and keep working?
If you don't enroll in Medicare and have HDHP coverage through work, you can keep contributing to your HSA. Be careful with automatic Part A enrollment through Social Security.
Related Terms
Health Savings Account (HSA)
A tax-advantaged savings account for people with high-deductible health plans to pay for qualified medical expenses.
Contribution Limit
The maximum amount you can contribute to an HSA in a calendar year, set annually by the IRS.
Catch-Up Contribution
An extra $1,000 that people age 55 and older can contribute to their HSA each year.
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