Social Security Medicare Part A and HSA contributions - do I have to stop HSA when enrolling?

You need to stop HSA contributions the month your Medicare Part A begins. This is because ANY Medicare coverage (even just Part A) makes you ineligible for HSA contributions. This is an IRS rule, not a Social Security or Medicare rule specifically. If you're still working with employer coverage, you can actually delay BOTH Part A and Part B without penalty, which would allow you to continue HSA contributions. Many people don't realize you can delay Part A when working past 65 with employer coverage.

My sister got hit with a TAX PENALTY for this exact thing!!! She kept putting money in her HSA after getting Part A and the IRS came after her! Don't make her mistake!!!

I just dealt with this. If you enroll in ANY Medicare (A or B or both), you can't contribute to HSA anymore. Has to do with Medicare being considered "coverage" under IRS rules. Your HR is probably confused bcuz different ppl handle different parts.

This is a common confusion point. To clarify what others have said: 1. You cannot contribute to an HSA if you have ANY Medicare coverage (including just Part A) 2. If you're still working with employer coverage at 65, you can delay BOTH Part A and Part B without penalty 3. If you want to continue HSA contributions, you must delay ALL Medicare enrollment 4. The month your Medicare begins (whether Part A, B, or both), you must prorate your HSA contribution for that year For example, if your Medicare starts July 1, you can only contribute 6/12 of the annual maximum to your HSA for that year.

when I turned 65 I kept working and kept my HSA going for 3 more years... didn't sign up for any Medicare til I retired at 68. no penalties because I had my work insurance. best decision ever because I saved like $20k more in my HSA which I'm using now for dental work Medicare doesn't cover!

i thoght part A was FREE so why not take it??? what am i missing here

To answer your follow-up question: When you retire after 65, you'll need to actively enroll in Medicare. You'll qualify for a Special Enrollment Period that lasts for 8 months after your employer coverage ends. Don't miss this window or you could face late enrollment penalties.

I spent HOURS trying to get through to Medicare when I had this exact question last year. Kept getting disconnected or waiting forever. Finally used Claimyr (claimyr.com) and got connected to a Medicare rep in 20 minutes who confirmed I needed to stop HSA contributions the month ANY Medicare starts. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU - saved me so much frustration! The Medicare person was actually really helpful once I got through to explain my situation.

my neighbor got BOTH parts A and B when he turned 65 even tho he was still working and then found out he couldnt do his HSA anymore!!! he was FURIOUS but nothing he could do about it. once youre in Medicare you cant get out!!!!

another thing to think about is if ur enrolled in social security benefits already. if u already get SS retirement, they automatically enroll u in part A when u turn 65 whether u want it or not. that stops HSA right away. happened to my coworker.

Since you're still working with employer coverage, here's what I recommend based on your HSA priorities: 1. Delay BOTH Medicare Part A and B while you continue working 2. Continue maximizing HSA contributions 3. When you retire or lose employer coverage, enroll in both Part A and B during your Special Enrollment Period 4. For the year you enroll in Medicare, prorate your HSA contributions for only the months before Medicare started This approach maximizes your tax advantages while avoiding penalties. Be sure your employer coverage meets the "creditable coverage" requirements to avoid Part D penalties later.

One more thing to consider - if you're planning to delay Medicare while continuing HSA contributions, make sure to keep detailed records of your employer coverage dates. The IRS may require documentation showing you had qualifying employer coverage during the period you delayed Medicare enrollment. I learned this the hard way when I had to provide employment verification letters and insurance certificates during a tax audit. Better to gather these documents now while you're still employed rather than trying to track them down years later!

Just wanted to add one more consideration that might be relevant to your situation - if you're married, you'll also need to think about how your Medicare enrollment timing affects your spouse's HSA eligibility. If you're both covered under the same employer family plan and you enroll in Medicare Part A, your spouse can still contribute to an HSA as long as they're not Medicare-eligible themselves. However, if your spouse is also approaching 65, you'll want to coordinate your Medicare enrollment decisions to maximize both of your HSA contribution opportunities. My wife and I staggered our Medicare enrollments by a year specifically to extend our HSA contribution period, and it worked out really well for building up our healthcare nest egg.