If You Have an HSA...
*Resources referenced are from Medicare.gov. We are not affiliated with any government agency. Last accessed Feb 2022
Medicare Eligibility and HSA's
Being Medicare eligible and having an HSA can cause tax complications if one is not aware of how these two entities interact. In some circumstances, a person turning 65 can mean automatic eligibility and also automatic enrollment in Medicare. Once you enroll in any part of Medicare, you won’t be able to contribute to your HSA.
When someone is Medicare eligible, they have met the requirements to qualify for Part A, but they may not have applied for Medicare yet. It is possible to be Medicare eligible and still contribute to an HSA after age 65, so long as Social Security payments and Medicare benefits have been postponed.
If you would like to continue making contributions to your HSA, you can delay both Part A and Part B until you (or your spouse) stop working or lose that employer coverage. You will NOT pay a penalty for delaying Medicare, as long as you enroll within 8 months of losing your coverage or stopping work (whichever happens first).
You should talk with your employer benefits manager about whether it makes sense to delay Part A and Part B.
NOTE: If you qualify for premium-free Part A, your coverage will go back (retroactively) up to 6 months from when you sign up. So, you should stop making contributions to your HSA 6 months before you enroll in Part A and Part B (or apply for Social Security benefits, if you want to collect retirement benefits before you stop working).