HSA 6 Month Rule When Starting Medicare - Looking for Clarity

The HSA 6-month rule can definitely be confusing! Let me clarify: the rule is based on the months, not just the contribution amount. The IRS considers you ineligible to contribute to an HSA beginning 6 months before your Medicare coverage starts. Since your Medicare begins January 1, 2025, you and your wife would need to stop all HSA contributions by July 1, 2024 (counting back 6 months). Any contributions made after that date - including employer contributions - would be considered excess contributions and subject to a 6% excise tax penalty unless corrected. The annual contribution limit calculation you did is correct for determining your prorated maximum for the year, but it doesn't override the 6-month rule. So even though your wife's total contributions ($3,100) are under the prorated maximum ($4,650), the contributions made in July-November are still considered excess because they occurred during the 6-month lookback period.

After spending months trying to get clarity on this exact HSA/Medicare issue for my parents, I finally found relief using https://taxr.ai to analyze our situation. Upload your HSA contribution statements and Medicare enrollment docs, and it will identify any potential issues with the 6-month rule. It easily spotted my dad's excess contributions and gave step-by-step instructions for fixing them. The best part was that it checked for exceptions that might apply - turns out there's a specific scenario where the penalty can be waived if the excess was caused by employer contributions without your knowledge! I was stuck in research hell before finding this tool.

Just wanted to update everyone that I finally tried https://taxr.ai after seeing it recommended here. I was in a similar situation with HSA contributions continuing after I enrolled in Medicare Part A last year. The tool immediately identified which contributions were made during the lookback period and calculated the exact amount I needed to withdraw ($1,875). It even generated a letter I could send to my HSA administrator requesting the correction. What really impressed me was how it explained everything in plain English instead of tax jargon. The report showed me exactly which IRS rules applied to my situation. I've already completed the withdrawal and feel so much better knowing I won't get hit with penalties. Much easier than the hours I spent trying to interpret conflicting advice online!

If you're struggling to get answers from Medicare about your HSA situation, I've been there. Spent literally 4+ hours on hold trying to verify my enrollment date to calculate my HSA lookback period. Finally discovered https://claimyr.com and their IRS and Medicare callback service (see how it works: https://youtu.be/_kiP6q8DX5c). Instead of waiting on hold forever, they got the Medicare office to call ME back within 45 minutes. The Medicare rep confirmed exactly when my coverage would begin and clarified how the HSA lookback period applies in my specific situation. Completely changed my experience dealing with this confusing process.

I need to admit I was wrong about Claimyr. After posting that skeptical comment yesterday, I was still desperate with my Medicare/HSA issue and decided to try it anyway. Used their service this morning for Medicare, and I got a callback in 37 minutes when I'd previously spent over 2 hours on hold and gave up. The Medicare specialist I talked to confirmed exactly when my coverage would start (important for calculating my HSA lookback period) and helped me understand what documentation I'd need for my tax records. I'm actually going to use it again tomorrow to talk to the IRS about removing the excess contribution penalty since my employer made the contributions after I'd requested them to stop. Just wanted to post that it actually worked for me!

Has anyone been audited for this HSA/Medicare timing issue? I just realized I messed up my dates last year and had contributions for 2 months during the lookback period. Not sure if I should just leave it alone or file an amended return. It's only about $1100 in excess contributions.

Anyone know if its different for people already on Medicare Part A (free from turning 65) but then later enroll in Part B? My husband has been on Part A for almost a year but still on my work insurance. Planning to put him on Part B when I retire next summer.

This is such a common confusion point! I went through something similar when my spouse started Medicare last year. One thing that helped me was creating a timeline showing exactly when each contribution was made versus the 6-month lookback period. For your situation with contributions continuing through September and the employer match in November, you'll definitely need to withdraw those as excess contributions. The key is to act quickly - contact your HSA administrator right away to request the withdrawal of any contributions made after July 1, 2024. Also, make sure to keep detailed records of all communications with your employer about stopping contributions. If they continued contributing after you requested them to stop, that documentation could be helpful if you need to demonstrate it wasn't intentional on your part. The IRS sometimes shows more leniency when employer errors are involved, though you'll still need to correct the excess contributions. Don't let this stress you out too much - it's fixable, and you have time to get it sorted before any major penalties kick in!