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ruthw
New Member

Was full time employed in 2018, had employer high ded ins coverage and only Medicare Part A, how do I answer the question "did I have Medicare at any time during 2018?

 
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3 Replies
MinhT
Expert Alumni

Was full time employed in 2018, had employer high ded ins coverage and only Medicare Part A, how do I answer the question "did I have Medicare at any time during 2018?

As you have Medicare Part A, you must answer Yes to this question. As you are covered by Medicare, you cannot contribute to a HSA.

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Was full time employed in 2018, had employer high ded ins coverage and only Medicare Part A, how do I answer the question "did I have Medicare at any time during 2018?

My husband turned 65 in 2018, signed up for Part A (hospitalization) because he was told he had to sign up for Medicare, had high deductible medical insurance, contributed to his HSA because no one told him he couldn't,  was never hospitalized so has never had a claim approved.  Do I still click on Medicare or none for the months after he turned 65 and enter all the HSA information anyway?

VictoriaD75
Expert Alumni

Was full time employed in 2018, had employer high ded ins coverage and only Medicare Part A, how do I answer the question "did I have Medicare at any time during 2018?

You do need to report that you had Medicare, as it will affect your HSA contribution limit for the tax year. This can result in an excess contribution.

 

If it turns out you did have an excess contribution, the following applies. Generally, you must pay a 6% excise tax on excess contributions. See Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, to figure the excise tax. The excise tax applies to each tax year the excess contribution remains in the account.

 

You may withdraw some or all of the excess contributions and avoid paying the excise tax on the amount withdrawn if you meet the following conditions.

  • You withdraw the excess contributions by the due date, including extensions, of your tax return for the year the contributions were made.
  • You withdraw any income earned on the withdrawn contributions and include the earnings in "Other income" on your tax return for the year you withdraw the contributions and earnings.

Pub 969 Tax-Favored Health Plans

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