Question 1

What about retroactive Part A?

Accepted Answer

Part A can be retroactive up to 6 months from your application date, but not before the month you first became eligible for Medicare. If you or your employer contributed to an HSA during those months, those contributions may be excess contributions subject to IRS income tax and a 6% excise tax.

Question 2

Do employer HSA contributions count too?

Accepted Answer

Yes. Your employer's payroll contributions to your HSA count the same as your own personal deposits. Once you are enrolled in any part of Medicare, both your own contributions and any employer contributions are subject to the same excess contribution rules. Coordinate with your payroll department or HR to stop employer contributions as well.

Question 3

Can I use HSA money after enrolling in Medicare?

Accepted Answer

Yes. You can spend existing HSA funds tax-free on qualified medical expenses, including Medicare Part B, Part D, and Medicare Advantage premiums. You cannot use them for Medigap premiums. You just cannot make new contributions once enrolled in Medicare.

Question 4

How do I avoid the retroactive Part A issue?

Accepted Answer

Stop all contributions — both your own deposits and your employer's payroll contributions — at least 6 months before you plan to retire, apply for Medicare, or apply for Social Security or Railroad Retirement benefits. If excess contributions have already been made, speak with your payroll department, HSA custodian, or a tax professional about correcting them.

Can I Contribute to My HSA After Enrolling in Medicare Part A?

Frequently Asked Questions