HSA

[SM2019]

Both my Husband and I are 65, both still working. He carries the insurance through his employer.  He has an HSA he deposited money into it in 2019. I just started to receive SS and Medicare this year but it was back dated to April 2019. Can he still put money into the HSA and deduct it from our taxes.

[BillM223]

Yes, your husband is still eligible to contribute to his HSA, because your Medicare does not cover him , i.e., your Medicare is not conflicting coverage for him.

I am surprised to hear that they backdated your Medicare to April. Normally they backdate only 6 months.

[SM2019]

I was surprised too.  Another question I have is:  My husband is going to retire in July can he still put money into the HSA this year?  What about the catch up amount and claim it for 2019?

[BillM223]

If your husband goes on Medicare in July 2020 and they backdate him, he will have Medicare for all of 2020, so he would not be eligible to contribute to his HSA in 2020.

But if he has not maxed out his HSA contribution for 2019, he has until April 15th to contribute more to his HSA.

NOTE: he must make it clear to the HSA custodian that this contribution is for 2019, otherwise, the custodian is required to apply it to 2020, which would be bad.

Also note that the annual HSA contribution limit is the sum of all HSA contributions made in calendar year 2019 and any HSA contributions made in 2020 for 2019 - so use all your fingers and toes to make sure that you don't accidentally exceed the annual HSA contribution limit.

If he hasn't contributed the $1,000 catch-up for being 55 or older for 2019, then he can do so, so long as he does it before April 15th.