I am in the section on HSAs. It asks if I had Medicare at any time in 2022. Does having Medicare Part A only count as having Medicare?

[MaryK4]

Yes if you are covered by Medicare for any part of the tax year, you cannot contribute to the HSA.

[Opus 17]

Yes, Medicare part A disqualifies you from contributing to an IRA HSA.  

[Edited, I meant to say Medicare disqualifies you from contributing to an HSA, got my wires crossed.]

To be eligible to contribute to an HSA, you must be covered by a qualifying HDHP and have no other medical coverage.  Medicare counts as "other coverage" and disqualifies you from contributing starting on the date your medicare coverage starts.  For example, if you were enrolled in Medicare as of June 1, 2022, then you have 5 months of HSA eligibility.  Turbotax will walk you through month by month to determine your eligibility.  If you were enrolled in Medicare the entire year, then you are totally ineligible to make HSA contributions. 

[gaugustfrank]

You can contribute to a HSA up until you enroll in Medicare.  I am currently contributing to my HSA and plan to be enrolled into Medicare in May.  When that happens, I cannot contribute any more.

[cindy-dougbittne]

Thank you.  This is a very good explanation.

[Opus 17]

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@gaugustfrank wrote:

You can contribute to a HSA up until you enroll in Medicare.  I am currently contributing to my HSA and plan to be enrolled into Medicare in May.  When that happens, I cannot contribute any more.

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Allow me to make a slight technical correction.  Your enrollment date determines your eligibility, but you can contribute any time during the year, even after you are enrolled in Medicare, as long as your total contributions for the year don't exceed your limit.

For example, if you are enrolled in a single HDHP and you enroll in Medicare on May 1, 2023, then your eligibility to make HSA contributions for 2023 is $1616.  You may make these contributions any time up to the tax filing deadline (April 15, 2024), even after you enroll in Medicare, as long as your total contributions for the  year are not more than $1616. 

[MarkK55]

This is contrary to advice I got as I prepared for retirement, planning to start Medicare for health coverage as of July 1, 2023.  The advisor told me about lookback or backdating - if I stop HDHP coverage as employee, and start Medicare Part B coverage, there's some strange policy detail that applies, automatically applying Medicare Part A coverage to me as of Jan. 1, 6 months prior.

It is an obscure rule. I had trouble getting my company benefits to support and understand.  The benefits and retirement documentation did not describe this situation.  Now, as I use Turbo Tax on my PC, it is not clear how to deal with this case. Under column titled "Type of HDHP Coverage", it accepts my entry of 'Family Plan' for Jan - June and other data entry pages imply I could have contributed to the HSA for that time period.

I am inclined to take advantage of the obscurity, and make contributions before April 15 as you described.

But, maybe some auditor will notice and penalize those contributions because of Part A lookback / backdate.

Suggestion: Somebody on TurboTax staff address this obscure issue, and clarify this on data entry pages.

[Opus 17]

@MarkK55 

There is a 6 month look back, but you or the planner are confused on how it works.  If you enroll in Medicare any time from 3 months before your 65th birthday, to 3 months after your 65th birthday, your enrollment is effective on the first day of the month in which you turn 65.  If you enroll more than 3 months after your 65th birthday, your enrollment is effective on the first day of the month 6 months prior to your application (except that your enrollment will never be before your 65th birthday).

So my answer above discusses your enrollment date, which is correct.  What you need to determine is what your enrollment date was, based on your specific facts.  If you enrolled during the normal enrollment window, and your 65th birthday was in July 2023, then your enrollment was effective on July 1, 2023 and you may be eligible to make HSA contributions for for Jan-June.  However, if you had delayed your enrollment past your 65th birthday, then it may be that your effective date was January 1.  That information should be on your Medicare card and in any letters or documents they sent you when you enrolled.