Open TurboTax

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
Still need to file? Our experts can get your taxes done right. Get started >
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cancel
Showing results for 
Search instead for 
Did you mean: 
RJG0307
Level 2

Is contributions to an HSA account deductible if you health insurance is Medicaid?

 
1 Best answer

Accepted Solutions
Critter-3
Level 15

Is contributions to an HSA account deductible if you health insurance is Medicaid?

NO ... they are expressly forbidden.  

View solution in original post

8 Replies
Critter-3
Level 15

Is contributions to an HSA account deductible if you health insurance is Medicaid?

NO ... they are expressly forbidden.  

RJG0307
Level 2

Is contributions to an HSA account deductible if you health insurance is Medicaid?

Thank you for your assistance 🙂

RJG0307
Level 2

Is contributions to an HSA account deductible if you health insurance is Medicaid?

What about if you health insurance in Medicare?

Can you still make contributions?

TomD8
Level 15

Is contributions to an HSA account deductible if you health insurance is Medicaid?

@RJG0307 

 

IRS rules say that you can't contribute to an HSA if you're enrolled in Medicare.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
RJG0307
Level 2

Is contributions to an HSA account deductible if you health insurance is Medicaid?

But I still make contributions just to pay medical bills?

 

Please advise and thanks.

Critter-3
Level 15

Is contributions to an HSA account deductible if you health insurance is Medicaid?

NO ... once you are on Medicare you can no longer have a HDP and therefore you cannot make new CONTRIBUTIONS   to an HSA account  period ... that is the law.     

 

You can, however,  continue to take DISTRIBUTIONS  from an already established HSA account until it is depleted.  

RJG0307
Level 2

Is contributions to an HSA account deductible if you health insurance is Medicaid?

Thank you Critter, I was having trouble finding the information.  The reason I asked this is because I will be eligible for Medicare soon, but I am currently on Medicaid.  And I am assuming that I cannot make contributions to an existing HSA being on Medicaid as well.  So since I have made a couple of distributions to my existing HSA, should I just take back the contributions and return them to the account I took them from?   The last thing I want is to break the law.  My apologies for not being up to date on this.  Your assistance is very much appreciated.  The last thing I want to do is break the law.

 

Please advise and thanks. 

Opus 17
Level 15

Is contributions to an HSA account deductible if you health insurance is Medicaid?

@RJG0307 

If you made HSA contributions during 2021 but you are not eligible, because you have other health coverage that disqualifies you, Those are considered “excess contributions.”  If you leave the excess contributions in the account, you will not be allowed a tax deduction and you will pay a 6% penalty.  You need to contact the HSA bank and request a return of excess contributions. This is not a normal distribution, and probably requires you to file a separate form with the bank.

 

You can continue to spend money in an HSA for medical expenses for yourself, your spouse, and your dependents, no matter what kind of insurance coverage you have. But you can’t make new contributions when you are disqualified.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
message box icon

Ready to start your taxes?

Hand off your taxes, get expert help, or do it yourself.

See Pricing
Manage cookies
v
ABCDEFGHIJKLMNOPQRSTUVWXYZabcdefghijklmnopqrstuvwxyz0123456789-_~