I am retired and not employed. Can I put money in an HSA to use for payment of Suplemental Insurance

[ilikai123]

(medicare is primary)

[MargaretL · Accepted solution]

No, you cannot put money in an HSA account, unfortunately. One of the eligibility rules for an HSA is that you are cannot be enrolled in Medicare.  Because you do have Medicare, HSA is not allowed. If you do make contributions to HSA, you will have to pay penalty tax on the contributions until they are distributed.  

To be an eligible individual and qualify for an HSA, you must meet the following requirements:

• You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.

• You have no other health coverage except what is permitted under Other health coverage , 

• You aren’t enrolled in Medicare.

• You can’t be claimed as a dependent on someone else's 2016 tax return.