HSA Contributions

[Sid Stafman]

When a taxpayer turns 65 can he continue to make HSA contributions after going on Medicare?

[TaxGuyBill]

Unless the contributions are for the months before he enrolled in Medicare, no.


Publication 969:

To be an eligible individual and qualify for an HSA, you must meet the following requirements.

You must be covered under a high deductible health plan (HDHP), described later, on the first day of the month.

You have no other health coverage except what is permitted under Other health coverage , later.

You are not enrolled in Medicare.

You cannot be claimed as a dependent on someone else's 2015 tax return.

[Burke]

Spouse is covered under Medicare. TP is not yet 65. Can he do a family plan HSA?

[Lion]

Not unless he has children still on his high-deductible healthcare plan. To have an HSA, the taxpayer needs the corresponding HDHP. If taxpayer is the only one with an HDHP (not on Medicare) then he's the only one on his HSA and it will be a Single plan.

That said, he still can make DISTRIBUTIONS FROM his HSA to pay for healthcare for his spouse and dependents. (I think. Researched this about five years ago and can't lay my hands on the info now. So, going by memory only.)

[mactoolsix]

After age 65 HSA distributions can be used for any qualified medical expense. Even those on Medicare will have some medical expenses.

Here's a good HSA guide for turning 65

https://www.hsaresources.com/pdf/Turning_65.pdf

Mike

[Burke]

Not unless he has children still on his high-deductible healthcare plan. To have an HSA, the taxpayer needs the corresponding HDHP. If taxpayer is the only one with an HDHP (not on Medicare) then he's the only one on his HSA and it will be a Single plan.

That said, he still can make DISTRIBUTIONS FROM his HSA to pay for healthcare for his spouse and dependents. (I think. Researched this about five years ago and can't lay my hands on the info now. So, going by memory only.)

Reviewed link provided by mactoolsix above: am still confused. All scenarios assume TP is over 65, and spouse is not. This situation is the reverse. TP makes HSA contributions. Always had a family account. No dependent children. He is under 65, spouse is now over 65 and signed up for Medicare. I understand he can use existing funds in HSA to pay her expenses, but is he now restricted to a Single HSA account for contributions?

[TaxGuyBill]

Reviewed link provided by mactoolsix above: am still confused. All scenarios assume TP is over 65, and spouse is not. This situation is the reverse. TP makes HSA contributions. Always had a family account. No dependent children. He is under 65, spouse is now over 65 and signed up for Medicare. I understand he can use existing funds in HSA to pay her expenses, but is he now restricted to a Single HSA account for contributions?

Does the healthcare policy still cover the Medicare-spouse? If so, it is still a "family" plan and taxpayer can contribute the "family" amount to the HSA. Notice 2004-50, Question #12 shows that a policy covering multiple people is still a "family" plan, regardless if some of the covered people are eligible or not.

https://www.irs.gov/irb/2004-33_IRB/ar08.html#d0e1696

[Burke]

I think all is good. She is not covered under the HDHP plan, although she got a separate Supplemental Policy, plus some drug coverage plan. AND, he is now only making the maximum contributions to the HSA for a single person.

[Roland Slugg]

Publication 969

In addition to reading Pub 969 those interested can also read Code §223(b)(7).