Can You Have a Health Savings Account (HSA) and Medicare?
Once you enroll in Medicare, you’re no longer eligible to contribute funds to an HSA
. However, you can use existing money in an HSA to pay for some Medicare costs. You’ll receive a tax penalty on any money you contribute to an HSA once you enroll in Medicare.
Do I need HSA if I have Medicare?
A.
Once you sign up for Medicare, you’re no longer eligible to contribute to a health savings account (HSA)
, so in some cases, it pays to hold off on enrolling. Health savings accounts offer a great opportunity to sock away funds on a tax-free basis to pay for healthcare costs during your working years and retirement.
Can you contribute to a health savings account after age 65?
If you are not enrolled in Medicare and are otherwise HSA eligible, you can continue to contribute to an HSA after age 65
. You are also allowed to contribute the $1,000 catch-up. If you signed up for Medicare Part A and now want to decline it, you can do so by contacting the Social Security Administration.
Yes, you can use your HSA funds to pay for your Medicare Advantage premiums
as well as any copays and coinsurance.
Does Medicare Part A disqualify HSA contributions?
Medicare Part A eligibility alone does not disqualify an individual from contributing to an HSA
. However, individuals cannot make HSA contributions for any month in which they are both eligible for and enrolled in Medicare (i.e., actually “entitled” to Medicare benefits).
When should you stop contributing to HSA?
Under IRS rules, that leaves you liable to pay six months’ of tax penalties on your HSA. To avoid the penalties, you need to stop contributing to your account
six months before you apply for Social Security retirement benefits
.
Can I use my HSA for dental?
HSA –
You can use your HSA to pay for eligible health care, dental, and vision expenses for yourself, your spouse, or eligible dependents
(children, siblings, parents, and others who are considered an exemption under Section 152 of the tax code).
Can I use my spouse’s HSA if I am on Medicare?
Your spouse on Medicare is not eligible to contribute to an HSA in his or her name
, regardless of whether he or she is covered on your medical plan.
Can I use HSA for vitamins?
Generally,
weight-loss supplements, nutritional supplements, and vitamins are used for general health and are not qualified HSA expenses
. HSA owners usually cannot include the cost of diet food or beverages in medical expenses because these substitute for what is normally consumed to satisfy nutritional needs.
Can I buy groceries with my HSA card?
Yes! You can use your Health Savings Account (HSA) or Flexible Spending Account (FSA) to purchase any Ready, Set, Food!
Can you buy an electric toothbrush with HSA?
Electric toothbrushes are not eligible for reimbursement with flexible spending accounts (FSA), health savings accounts (HSA)
, health reimbursement accounts (HRA), dependent care flexible spending accounts, and limited-purpose flexible spending accounts (LPFSA) because they are general health products.
Can you have an HSA and draw Social Security?
HSAs offer many advantages, but they don’t mix with certain types of federal programs and benefits. For example,
if you are enrolled in Medicare Parts A or B, or if you file for Social Security benefits after age 65, you can’t make contributions to an HSA
.
What is the new HSA limit for 2021?
The annual limit on HSA contributions will be
$3,600 for self-only and $7,200 for family coverage
. That’s about a 1.5 percent increase from this year.
