HDHP and HSA

[autigers8384]

My husband retired in July 2021.  We continue to be covered on his former employer's HDHP.  My husband will turn 65 in December 2025 and begin Medicare coverage.  What is the amount we can contribute to our HSA for 2025?  Also will I still be able to contribute to the HSA for me until I turn 65 in 2028?  Will the HSA transfer to me when my husband turns 65.  I will still be eligible for his company's HDHP until I turn 65.

[KrisD15]

Contributions must stop before being covered by Medicare.

I do need to edit my answer to your question since you say your husband will turn 65 in December. Please forgive my inattentiveness. 

If your husband applies for Social Security at age 65 in December, he can contribute to his HSA through November. 

There is a funny situation where, when a person applies for Social Security AFTER turning 65, Medicare will be active retroactive to the month in which they turned 65, OR up to six months prior to the application, whichever is less.

Pease keep this in mind if your husband turns 65 in December, but does not apply for Social Security Benefits until afterwards.

You will still have the Family Limit for 2025.

After the time your husband turns 65, you may continue to contribute to your HSA account until you apply for social security benefits (with that same look-back if over 65) as long as you continue to have the family high deductible health plan.  

Again, be aware of the "look-back period" if you apply after age 65.

Withdrawals can continue until the accounts are depleted. 

[Edited 2/28/2025 I 5:12pm PST]

@autigers8384

[Mike9241]

Will the HSA transfer to me when my husband turns 65? I doubt it. Since each taxpayer must have their own account. Talk to the employer so things don't get messed up.

Your husband cannot make a family contribution for December because of his medicare coverage. 

assuming a family plan can make a maximum family coverage contribution of (8300+ 1000 over 55 catch up) times 11/12= 8525

if you open your own HSA for December you can contribute

4150/12 + 1000 =1346   your contribution 

[Opus 17 · Accepted solution]

1. Your husband must stop contributions when he has "other" coverage, including medicare.  If he enrolls during his normal enrollment window (65th birthday +/- 3 months) his enrollment will be effective the first day of the month he turns 65.  Since that is December, he can contribute 11/12ths of his annual limit.  If it is a family HDHP, and the limit for 2025 is $8550, then his limit for 2025 will be (11÷12) x ($8550 plus $1000 catch-up) = $8754.

2. Once funds are contributed to an HSA, they can be spent at any time for qualified medical expenses, even if the person is no longer eligible to contribute.  Your husband keeps his HSA and can use it to pay for qualifying medical for himself, his spouse, and any tax dependents, even if is not eligible to contribute.

3. HSAs are individual accounts.  You never "transfer" accounts and they are never joint.  Your husband owns his own account.  You can open an HSA in your own name, and contribute if you are eligible, but you can't contribute to his HSA.