Medicare
Working past 65 with a health savings account: the Medicare trap
You cannot contribute to a health savings account once you are enrolled in any part of Medicare. The trap is that Part A can start up to six months back, so contributions in that window can create a tax problem.
Why the timing is tricky
If you sign up for Social Security retirement benefits after 65, Part A coverage generally starts six months before you apply. Any HSA contributions during those six months can be treated as excess.
Because of that, people who want to keep contributing usually plan to stop contributing about six months before they apply for Social Security or Medicare.
What you can still do
- You can keep using the money already in your HSA for qualified medical costs.
- You can stop contributing and still keep the account.
- Ask a tax professional about your own contribution limits and dates.
Have this ready when you call
- Your date of birth
- Your employer plan details
- The dates of your HSA contributions
- Whether you plan to claim Social Security
Common questions
Do I need Medicare if my employer plan is good?
It depends mostly on how many people your employer has, and on whether you are keeping the HSA. A quick conversation can lay out what applies.
Can I enroll in Part B and keep my HSA?
No. Once you are enrolled in Medicare, you can no longer make HSA contributions.
Related answers
Rather talk it through?
Call 855-367-1095 and a licensed agent will go through your situation with you. There is no charge to ask, and no obligation to enroll.
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