That link is a good link, but it is still vague. This is what is says about our situation.
"NOTE: If you qualify for premium-free Part A, your coverage will go back (retroactively) up to 6 months from when you sign up. So, you should stop making contributions to your HSA 6 months before you enroll in Part A and Part B (or apply for Social Security benefits, if you want to collect retirement benefits before you stop working)."
AND
"! WARNING: If you have a Health Savings Account (HSA), you should stop making contributions to your HSA 6 months before you sign up for Part A and Part B in order to avoid a tax penalty. "
Our situation is this:
My spouse is allowed up to $8,300 HSA for the year. The employer will contribute $1,700 of that if we have the HSA until at least past Oct 16th. ($425/quarter).
SO, the following 4 question remain:
1. If our employer puts funds in our account in the previous 6-months ($850), is that allowed?
2. If we put our entire year's worth of possible contributions into the HSA ($6,600) between 7-12 months before signing up for medicare, is that allowed without penalty? Or, do we have to limit it to 1/12 per month
3. OR, are we only allowed 1/2 of the total $8,300 for the year (if medicare started on Jan 1 of the following year, for example) = $4,150.
4. What is the actual amount of a penalty? How is it figured?
