topic Re: HSA and Medicare in Retirement tax questions

HSA and Medicare

jg330 — Tue, 24 Feb 2026 06:51:33 GMT

I turn 65 in August. I work full time and have an HSA. I have NOT signed up for Medicare Part A so that I can continue to contribute to my HSA.

I don't intend to sign up for Medicare until I am no longer working full time.

Once I am no longer covered with my employer's insurance plan, what is the window to sign up for Medicare?

Prior to enrolling in Medicare, when do I have to stop contributing to an HSA to avoid a penalty?

Re: HSA and Medicare

heidis1 — Wed, 26 Jul 2023 20:40:40 GMT

Hi jg330,

With your Medicare,
You may want to wait and sign up for Medicare within 8 months after you or your spouse stop working.

Here is a link that will help you decide when is a better time for you:

When to sign up for Medicare

Get started with Medicare

With your HSA,

If you do not stop HSA contributions at least six months before Medicare enrollment, you may incur a tax penalty.

Here is link for your HSA:

Health Savings Accounts (HSAs) and Medicare

Thank you for asking.

Re: HSA and Medicare

Denisev1220 — Wed, 26 Jul 2023 20:59:15 GMT

Please don't delay in signing up for Medicare. If you sign up late you are hit with a lifetime penalty. My faher had VA benefits and lived outside the US. he saw no need to sign up. He came to the states for knee surgery but fell and broke his hip. Because there was no room in a VA hospital hours away, he was in a public hospital with no insurance. He had to sign up for Medicare and his premiums were nearly triple and was for his lifetime. When you get medicare, your existing insurance often turns into a supplement plan. So while Medicare pays for 80% of your bills, you supplement picks up the rest of the tab, so there is no need to put money away into an HSA

Re: HSA and Medicare

jg330 — Wed, 26 Jul 2023 20:56:06 GMT

But then I lose the HSA tax benefit if I sign up for Medicare while still working.

Re: HSA and Medicare

Denisev1220 — Wed, 26 Jul 2023 21:03:38 GMT

The tax benefit of an HSA is that the money you spend on medical expenses isn't taxed. With Medicare and a supplemental insurance, the HSA would have no benefit if you pay no medical expenses at all.

Re: HSA and Medicare

Esther M — Wed, 26 Jul 2023 21:25:52 GMT

Hi jg330,

If you are planning to continue working past age 65, you may be able to delay enrolling in Medicare. If you have credible health coverage from your employer or are covered under a spouse's employer plan, you may qualify for a Special Enrollment Period, and be able to delay enrolling without penalty. In some situations, though, you may still be required to take full Medicare benefits at age 65 even if you plan to keep working. One such example is when an employer has fewer than 20 employees.

To find out if you can sign up later without incurring penalty (which is a life time penalty by the way), please use the tool here When can I sign up for Medicare?

Regarding your HSA Account, to avoid a penalty you should stop contributing to the HSA account at least six months before you sign up for Medicare.

I hope this answers your question.

Sincerely