Question: My friend told me that when I turn 65 and I have Medicare, I can’t have an HSA. Is it correct?
Answer: First of all, let’s define the HSA (Health Savings Account) as an account that allows a person or family to save pre-tax dollars to use to pay for qualified medical expenses. The HSA is overseen or managed by a bank, credit union, or insurance company. People with a High Deduction Health Insurance Plan (HDHP) are allowed to implement an HSA.
When you (and sometimes your employer) add money to this HSA, it is pre-tax. You do NOT have to pay income tax for the money. This allows you to save money on taxes and pay for medical expenses along the way. The maximum amount you are allowed to join your HSA in 2022 is $ 3,650 for an individual and $ 7,300 for a family. If you’re over 55, you can make an additional $ 1,000 a year to your HSA.
This HSA is your money, it can’t be taken away from you and you don’t have to spend it by the end of the year. It continues to grow as you add HSA and is available for your entire life (with Medicare) for medical expenses. This HSA allows you to save on pre-tax dollars to pay for any medical expenses that may occur one day.
Your question is about being 65 years old and eligible for Medicare. If you are eligible for Medicare after registering with ETA and Medicare, you can no longer put money into your HSA. So this is important to understand and plan for when you turn 65, if you have an HSA. You can use your HSA money after you have Medicare.
If you are eligible for Medicare but have not enrolled in Medicare A or B, you can continue to help with your HSA. When you enroll in Medicare A or B, you will not be able to help with your HSA. The money in the HSA is still money you will use in the next few years, but you can’t put in any new money when you have Medicare A or B. If you are married, you can contribute on behalf of your spouse, but only. $ 3650 individual amount. This rule change occurs on the first month of your 65th birthday. To plan for this Medicare eligibility, you must decide on your Medicare and HSA contribution. You can continue your contribution until the age of 65, but you cannot enter the full year amount, which would be proportionate, month by month, until your birthday. Then your contributions should stop.
You can save your HSA and money when you have Medicare. You can continue to use your HSA money to help pay for your medical expenses. You can have HSA and use HSA, even if you have Medicare A and B. When your spouse is eligible for Medicare A and Bra and is enrolled in Medicare, contributions made on their behalf must also be stopped.
The next question is “What can I use to pay HSA money?”
HSA can be used to cover many of the medical expenses we use. The IRS list of Qualified Medical Expenses is a very extensive list. The full IRS list is available at www.IRS.gov. Let me give you some examples. These are the usual things we think; medical and medical expenses, hospital bills, ambulance travel, and blood work. Others include health insurance premiums, long-term care insurance premiums, hearing aids and batteries, smoking cessation programs, glasses, lash eye surgery, weight loss programs, prescription drugs and medications, nursing home care, guide dog, drug addiction, they are dental aids. (including braces, dentures, fillings, and oral surgeries), chiropractic, and acupuncture.
If you have an HDHP and have the opportunity to have an HSA for you and your family, I strongly encourage you to help. Talk to your employer and see the rules for your situation and HSA. This could be used for your and your family’s overall and long-term financial health.
Senior Life Matters is a community program sponsored by Lutheran Jamestown. For questions and concerns, or to contact Janell Sluga, GCMC, call 716-720-9797 or email [email protected]