Medicare Part A automatically enrolled 6 months ago without notice - can't contribute to HSA now?

Unfortunately, this is one of those weird Medicare rules that catches many people by surprise. Medicare Part A is automatically applied 6 months retroactively when you apply for Social Security benefits at or after FRA. It's called the "retroactive enrollment period" and it's actually written into the law. Regarding your HSA contributions during this period - yes, this is a serious issue. The IRS considers any HSA contributions made while enrolled in ANY part of Medicare (even just Part A) to be "excess contributions" subject to a 6% excise tax for each year they remain in your account. You have a few options: 1. Work with your employer to stop HSA contributions immediately 2. Withdraw the "excess contributions" made since September 2024 (plus any earnings on those contributions) before you file your 2024 taxes 3. If you really want to continue HSA contributions, you could withdraw your Social Security application (if it's within 12 months of filing) but that means delaying your benefits

OMG this exact thing happened to my husband last year!!! It's INSANE how they don't tell you about this until AFTER the fact. He had been putting $7200 a year in his HSA and then suddenly found out he couldn't do that anymore because of the retroactive Medicare. The worst part was he had to pay back some HSA money AND he missed the deadline to sign up for Part B because nobody told him he was enrolled in Part A! Total nightmare with SSA and Medicare people giving different answers every time we called.

wait so if ur turning 66 in feb why would they backdate ur medicare to september? shouldnt it be august (6 months)? maybe i'm missing something but the math seems off to me

I had the same issue and spent HOURS on the phone with SSA trying to fix it. It's ridiculous how they do this and don't even bother to tell people! I ended up having to contact a tax professional to help me figure out how to handle the HSA contributions I'd made during those 6 months. Honestly, the whole system is designed to trip people up. One thing I can suggest - get a copy of your Medicare enrollment confirmation in writing. You might need it for tax purposes to prove exactly when your coverage started.

This is a perfect example of how SSA and Medicare policies don't align well with modern healthcare options like HSAs. Here's what you need to know: 1. For the excess HSA contributions from September-December 2024: Complete Form 8889 with your 2024 taxes and withdraw those excess contributions (plus any earnings on them) before filing your taxes. This should help you avoid the 6% penalty. 2. For your Medicare card: Call the Medicare enrollment line directly at 1-800-MEDICARE to request your card be sent to you. They should have your Medicare number in their system already. 3. For future planning: Since you're still working with employer coverage, you could technically decline Medicare Part B without penalty (you can enroll later during a Special Enrollment Period when you stop working). But Part A is mandatory if receiving Social Security benefits. 4. Documentation: Get a letter from SSA stating your exact Medicare Part A start date for tax purposes. The retroactive enrollment is built into the Social Security Act, specifically to provide maximum coverage to beneficiaries. While well-intentioned, it creates these exact HSA conflicts that weren't anticipated when the laws were written.

i dont see why everybodys making such a big deal about this! just stop the hsa stuff and enjoy your ss checks. the govt gives you free medicare part a and your complaining?? smh some people are never happy

just wondering - does this retroactive thing affect people who are still working? i turn 66 next year but plan to work till 70. should i not file for ss until i stop working? this seems so confusing

UPDATE: Called SSA this morning and waited 2.5 hours!! They confirmed I was automatically enrolled in Medicare Part A in September 2024 and there's no way to undo it. The rep said my Medicare card was supposedly mailed in September but I never got it. They're sending a new one now. I've also contacted my HSA administrator to figure out how to handle the excess contributions. What a mess!!

Did your SS benefit letter show your Medicare number? Mine did, in the top right corner. You can use that number to create a Medicare.gov account and start managing your Medicare online even before your card arrives.