Can You Contribute to an HSA After Age 65? What You Need to Know

Health Savings Accounts (HSAs) are a great way to save for medical expenses with triple tax advantages—tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified expenses. But what happens when you turn 65? Can you still contribute to your HSA? The answer depends on your Medicare enrollment status.

HSA Contributions and Medicare: The Key Rule

You can only contribute to an HSA if you are enrolled in a high-deductible health plan (HDHP) and NOT enrolled in any part of Medicare.

What Happens at Age 65?

At 65, you become eligible for Medicare, and this impacts your HSA contributions:

✅ If You Delay Medicare – You can continue contributing to your HSA as long as you remain covered by an HSA-eligible HDHP and do not enroll in Medicare Part A or Part B.

🚨 If You Enroll in Medicare – You must stop contributing to your HSA the month your Medicare coverage begins.

Can You Delay Medicare to Keep Contributing?

Yes! If you’re still working for an employer with 20+ employees and covered under an employer-sponsored HDHP, you can delay enrolling in Medicare and continue contributing to your HSA. However, once you enroll in Medicare—whether at 65 or later—you must stop HSA contributions.

Beware of Retroactive Medicare Enrollment

If you enroll in Medicare after 65, Medicare Part A coverage is retroactive for up to 6 months (but not before your 65th birthday). To avoid excess contributions, you should stop contributing to your HSA at least 6 months before enrolling in Medicare.

Using HSA Funds After 65

Even if you can’t contribute after enrolling in Medicare, your HSA funds remain yours and can be used for:

✔ Qualified medical expenses (tax-free)
✔ Medicare Part B, Part D, and Medicare Advantage premiums (tax-free)
✔ Long-term care insurance premiums (within IRS limits)
✔ Non-medical expenses (after 65, subject to regular income tax but no penalty)

Key Takeaways

✔ You can contribute to an HSA after 65 ONLY if you delay Medicare enrollment.
✔ Once you enroll in Medicare, you must stop HSA contributions.
✔ If you enroll in Medicare after 65, stop contributing at least 6 months prior.
✔ You can still use HSA funds for healthcare and Medicare-related expenses tax-free.

Need Help Navigating Medicare and HSAs?

Choosing when to enroll in Medicare while maximizing your HSA can be complicated. If you need guidance on the best timing for your situation, Mid Michigan Medicare is here to help!