tp and hsa

[TAXMAN]

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

[bbstacker]

The following link explains the rules better than I can type them.

https://www.benstrat.com/downloads/HSA-GPS_HSAs-and-Medicare.pdf

TP can enroll in the HSA as long as they have not signed up for Medicare.

[FDNY]

I'm not 100% on this, but shouldn't TP sign up for Medicare but delay benefits to avoid a future penalty and continue HSA?  Something to check up on.

[Lee B]

1. You can sign up for social security and delay benefits, not aware that you can do that for Medicare.

2.  As  long as the TP has Employer provided qualifying HDP health insurance then the TP can delay signing up for Medicare without penalty.

3.  Once the spouse signed up for Medicare, her allowable HSA contribution drops to zero, so the TP contribution would be based on one person.

[FDNY]

 I think it is the Part B that can be postponed.  Part A is "free" so they say.   If TP has not yet signed up for SS I think he needs to sign up for Medicare at 65 to avoid penalty.

[Lee B]

1 hour ago, FDNY said:

 I think it is the Part B that can be postponed.  Part A is "free" so they say.   If TP has not yet signed up for SS I think he needs to sign up for Medicare at 65 to avoid penalty.

Part B can only be postponed without penalty  as long as you have qualifying employer provided health insurance. Just went thru this with my wife

who just retired several months ago at age 69 after being a nurse for 45 years.

She had to prove she had qualifying employer provided health insurance so that she could avoid the penalty being added to her Part B premium.

My wife signed up for Medicare Part A at age 65, because once you turn age 65,  most employer coverage considers Medicare Part A to be primary,

which would be a nasty surprise if you turned 65 and hadn't signed up for Medicare Part A expecting your employer health insurance to pick up everything. In which case this TP may be making a serious mistake !  Also Part D ( Prescription Coverage) can not be postponed, because I missed the deadline by 30 days 6 years ago and now I pay a $3.30 monthly penalty which is added to my monthly Part D premium.

[FDNY]

Great explanation Lee, thanks.    A nurse for 45 years, she deserves a medal.  From personal experience I know they are special people who don't get enough recognition.