• Question
  • Healthcare Savings Accounts

    Asked by a 67 year old woman from Spindale, NC on 6/24/2018

    When my husband and I were working, HSAs didn't exist--or if they did, our employers didn't offer them. Now that we're retired and growing older, we have a lot of medical and dental expenses not covered by insurance. In some years we've paid thousands out-of-pocket.

    I read that people who are still in the workforce can use HSA accounts to build a balance they can take with them into retirement, then draw out funds tax-free. Is there any similar benefit available for today's retirees, i.e., a way to save money in a tax-advantaged account to help pay for out-of-pocket medical expenses in years when it all "hits the fan?"

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  • Categories: Medicare, Health Care and Health Insurance

Answers

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  • Unfortunately, as of today, you lose eligibility to contribute to an HSA once you enroll in Medicare. There is an edge case for eligibility past age 65 --if you are still working, covered by your employers insurance and not enrolled in any Medicare services. However, the majority of Americans will not meet this criteria. Please contact a specialist for more information if you feel that this situation applies to you as penalties for not enrolling in Medicare in set time frames can be expensive and long-lasting.

  • Login to rate this answer:   Answered on 7/2/2018
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.