HSA and medicare

[Pet123]

Just want to confirm:

I qualify for an HSA.

Will be 65 this February, 2022.   Plan to retire and start to take Medicare in July, 2022.   Based on what I have read (confusing)  I cannot add to my HSA savings in  2022 except for the month of January.  (6 month look back period.).  And in Jan I basically am only allowed to take 1/12 of the annual max.

[Opus 17]

You are eligible to make HSA contributions for any month that Medicare is not active.  Part A Medicare starts the month you turn 65 (or, if you turn 65 on the first day of the month, Medicare starts the first day of the previous month).  If you enroll for part A late, it is retroactive 6 months from enrollment date.  That means if you turn 65 in February 2022 and enroll in Medicare in July, 2022, your Medicare will be active as of February 1, 2022.

That means you are HSA eligible for only 1 month of 2022, and your contribution maximum will be $387 (if covered by a single HDHP) or $691 (if covered by a family HDHP). 

You can contribute this money at any time in 2022 that is convenient.  You may even contribute after you turn 65 and after you have Medicare.  What counts is the amount you can contribute, it doesn't matter on what date you actually make the contribution. 

[Pet123]

Thanks for the response.  I been told that the 6 month lookback rule only applies if my current employer does not provide the same coverage as Part B and Part D Medicare plans . (Employer  does not provide the same type of coverages in their High deductible plans for employees 65 and older.  Mine does)   So the reasoning I'm told is that if I turn 65 in Feb,  Then apply for Medicare in July, I would be able to contribute for the first 6 months of 2022 (only 6 months worth).   Is this correct?

[Opus 17]

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@Pet123 wrote:

Thanks for the response.  I been told that the 6 month lookback rule only applies if my current employer does not provide the same coverage as Part B and Part D Medicare plans . (Employer  does not provide the same type of coverages in their High deductible plans for employees 65 and older.  Mine does)   So the reasoning I'm told is that if I turn 65 in Feb,  Then apply for Medicare in July, I would be able to contribute for the first 6 months of 2022 (only 6 months worth).   Is this correct?

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I don't know enough about Medicare to answer that question definitively.  However, the few reliable sources I consulted in the past few minutes say that you can delay enrollment and avoid late-enrollment penalties if you continue to work and keep your work insurance, but the 6 month lookback still applies.  See page 4 here for example. 

https://www.cms.gov/Outreach-and-Education/Find-Your-Provider-Type/Employers-and-Unions/FS3-Enroll-i...