Do we qualify to make 2023 HSA contribution?

Forum|Forum|2 years ago
December 23, 2023
2 replies
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I am trying to figure if both my wife and I are still eligible to make has contributions for 2023. This is such a maze.
My wife and I are both over 65. I turned 65 mid-year.
We have both been insured under her High Deductible plan for 2023.
On November 17 we lost the medical insurance due to her layoff.
We were both under Medicare Part A for the entire Year.
I subscribed to Medicare Part B in December 2023. She does not have Part B this year.

Do we still qualify to make 2023 HSA contribution?

TurboTax Online

Best answer by dmertz

If both of you were covered by Medicare Part A for all of 2023, neither of you is eligible to contribute to an HSA for 2023. Being covered by Medicare also makes you ineligible to contribute to an HSA in the future.

However, I question that, having turned age 65 mid-year, you were covered by Medicare Part A the entire year because unless disabled or you have end-stage renal disease your Medicare coverage would have started on the first of the month that contained your 65th birthday. You would be eligible to contribute to an HSA for the months in 2023 prior to that.

Anonymous_

Employee

No text available

Critter-3

HSA eligibility

To contribute to an HSA, you must be enrolled in an HSA-eligible health plan. For 2023, this means:

It has an annual deductible of at least $1,500 for self-only coverage and $3,000 for family coverage
Its out-of-pocket maximum does not exceed $7,500 for self-only coverage and $15,000 for family coverage

And to contribute to an HSA you must:

Not be enrolled in a health plan that is not an HSA-eligible plan, such as a full purpose health care flexible spending account (FSA)
Not be enrolled in Medicare
Not claimed as a dependent on someone else's tax return

dmertzAnswer

Employee

Mike9241

If you established an HSA before you enrolled in Medicare, you can still use the funds from the account. But in order to save to an HSA, you must be enrolled in an HSA-eligible health plan and you can’t be covered by other insurance, such as Medicare. This means you can’t contribute to an HSA (or establish an account if you don’t have one) once you’re enrolled in Medicare.

There’s a six-month contribution look-back period if you sign up for Medicare after age 65 (although not before the month you turn 65), which means you receive retroactive health coverage and can’t make contributions during that period.