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If you have applied for or are receiving Social Security benefits, which automatically entitle you to Medicare Part A, you cannot continue to contribute to your HSA. If you contribute to an HSA account and are enrolled in Medicare, you'll be accessed a 6% excise tax penalty.

 

You can defer signing up for Medicare and Social Security if you have an employer with 20 or more employers and and are enrolled in a HSA eligible group plan.  

 

You should contact the trustee, explain the situation and find out what they advise regarding withdrawal necessity and amount.

 

The following article provides more detail:

 https://www.journalofaccountancy.com/issues/2021/jul/medicare-rules-on-hsa-after-age-65.html

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