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HSA's & Medicare: Planning Ahead: When to stop HSA contribtuions before enrolling in Medicare?

If you're approaching age 65 and have a Health Savings Account (HSA), you're not alone in wondering how it fits into your Medicare journey. Many of our clients at  love the flexibility of an HSA — and for good reason! It’s tax-advantaged, grows with you, and gives you a way to pay for medical expenses both now and later.

But here's something that surprises many people: Once you enroll in Medicare, you can no longer contribute to your HSA. And the timing of when to stop those contributions is crucial.

Why the Timing Matters

Enrolling in Medicare Part A (hospital insurance) — even if you delay other parts — disqualifies you from making new HSA contributions. What’s more, Medicare Part A coverage is retroactive for up to 6 months (or to your 65th birthday month, whichever is shorter). That means if you’re still contributing to your HSA when Medicare kicks in, you could accidentally over-contribute — and the IRS may charge you a penalty.

To stay safe, most experts recommend stopping HSA contributions at least 6 months before you enroll in Medicare.

Still Working After 65? Here's What to Consider

If you're still working and your employer offers a high-deductible health plan (HDHP), you may choose to delay Medicare. But keep this in mind:

  • If your employer has 20+ employees, you can likely delay Medicare without a penalty.

  • If you claim Social Security, you're automatically enrolled in Medicare Part A — which stops your HSA contributions, whether you realize it or not.

Planning around these scenarios takes some care — and we can help.

What Happens to Your HSA After Medicare?

Good news: You can still use your HSA even after you stop contributing.

  • Pay Medicare premiums (except Medigap), copays, and other qualified medical expenses tax-free.

  • Use the account as a retirement healthcare fund — no penalty if used for non-medical expenses after age 65 (just regular income tax applies).

Let’s Plan Your Medicare Journey — Together

We walk you through every step of your Medicare transition — including how your HSA fits in. Early planning avoids IRS headaches and helps you make the most of your hard-earned savings.

Ready to build your personalized Medicare timeline? Contact us today or give us a call — we're here to help!

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