Impact to HSA contributions once spouse enrolls in Medicare Part A

[Esterházy2024]

Hi,

I am seeking verification that I fully understand the rules around H.S.A. contributions given this scenario:

I am over 65 years old but still working. I have a Family HDHP with my employer, and I, and my employer, both contribute to my HSA the maximum allowed annually for Family HDHP coverage. Additionally, I also make the 1K catch-up contribution.

My wife is covered by my workplace health insurance, but she just retired and will file for Social Security benefits soon. Of course, this means that she will automatically be enrolled in Medicare Part A. She will not enroll in Medicare Part B as she will continue to be covered under my workplace health plan. Also, my wife does not have her own HSA.

So, two questions:

• Do I need to stop contributing to my HSA before my wife is covered by Medicare Part A (probably by September 2024)?
• Should I change my HSA contributions for 2025 at my annual benefits enrollment period in November of this year from the current Family HDHP contribution level to an individual contribution level?

Based on what I have read in this forum and elsewhere, I should be able to continue to contribute the maximum amount allowable for family coverage to my HSA, as I am the 'owner' of the HSA account.

Thanks for any feedback, appreciate all responses

[Opus 17]

Because your wife is "covered" by an HDHP, she is allowed to make contributions to an HSA in her own name, even if she is not the owner of the plan.  You share the same overall family limit ($8300) but her $1000 catch-up provision is her own.  So at the present time, she could contribute up to $83 per month for each month that she is not covered by other insurance that disqualifies her from making HSA contributions.

Once she is "covered" by other insurance, she is not eligible to make HSA contributions in her own name, even if she is also covered by the HDHP.  Remember that if she is more than 3 months past her 65th birthday, her Medicare enrollment will be back-dated to the month of her 65th birthday, or backdated 6 months from the date of enrollment if she is more than 6 months past her 65th birthday, and that will change the limit on her contributions. 

Your contribution limit is not affected by her status, only your own.  If you remain covered by a family HDHP and have no other coverage, you can contribute up to $9300 for 2024.  If your workplace switches you to a single HDHP because your spouse is no longer covered, your limit will be reduced accordingly ($691 per month for each month you are enrolled in a family HDHP and $345 per month for each month you are enrolled in a single HDHP). 

Remember that whenever you enroll in Medicare, your enrollment will be backdated 6 months, and that will make you ineligible to make HS contributions from that point.  

[Esterházy2024]

Thanks for the information, it's all starting to make more sense to me!