Tp and hsa

[TAX4US]

TP is 65 and still working full time. Is eligible for Medicare but not signed up. Spouse is receiving Medicare and social security. TP is enrolled in HSA. Can TP still make and receive contributions into the HSA on a 2 person level? Thanks

[ATSMAN]

TP is 65 and still working full time. Is eligible for Medicare but not signed up. Spouse is receiving Medicare and social security. TP is enrolled in HSA. Can TP still make and receive contributions into the HSA on a 2 person level? Thanks

I believe spouse receiving Medicare can not participate in any HSA. I believe the reason is that Medicare is her primary insurance and any other medical insurance i supplemental.

[Gretel]

I believe spouse receiving Medicare can not participate in any HSA. I believe the reason is that Medicare is her primary insurance and any other medical insurance i supplemental.

I agree, in addition, the cut off for HSA contributions goes back 6 month before application. It's in the Medicare handbook.

[TaxGuyBill]

Yes, the taxpayer can contribute up to the full 'family' amount into his HSA. The spouse can not contribute any to her HSA.


Notice 2008-59:

Q-16. How do the maximum annual HSA contribution limits apply to an eligible individual with family HDHP coverage for the entire year if the family HDHP covers spouses or dependent children who also have coverage by a non-HDHP, Medicare, or Medicaid?

A-16. The eligible individual may contribute the § 223(b)(2)(B) statutory maximum for family coverage. Other coverage of dependent children or spouses does not affect the individual’s contribution limit, except that if the spouse is not an otherwise eligible individual, no part of the HSA contribution can be allocated to the spouse.

https://www.irs.gov/irb/2008-29_IRB#NOT-2008-59

[TaxGuyBill]

Oops, I missed the first part about him being eligible for Medicare:

Notice 2004-50:

Q-2. May an otherwise eligible individual who is eligible for Medicare, but not enrolled in Medicare Part A or Part B, contribute to an HSA?

A-2. Yes. Section 223(b)(7) states that an individual ceases to be an eligible individual starting with the month he or she is entitled to benefits under Medicare. Under this provision, mere eligibility for Medicare does not make an individual ineligible to contribute to an HSA. Rather, the term “entitled to benefits under” Medicare means both eligibility and enrollment in Medicare. Thus, an otherwise eligible individual under section 223(c)(1) who is not actually enrolled in Medicare Part A or Part B may contribute to an HSA until the month that individual is enrolled in Medicare.

https://www.irs.gov/irb/2004-33_IRB#NOT-2004-50

But as was mentioned, beware of the 6 month retroactive coverage.