I read an article yesterday, The Surprise Tax Hit for Post-Medicare HSA Contributions, which talked about the tax penalties for continuing to fund your HSA once enrolled into Medicare. As it goes with anything to do with Medicare, timing is everything.
Basically, what you want to watch out for is the initial period of enrolling into Medicare. Because those enrolled into Medicare cannot also contribute to an HSA. Apparently, the interaction between Social Security, Medicare and HSA contributions can be a little sticky.
If you are currently contributing to an HSA, and you’re approaching the year you turn 65, I suggest doing a little pre-planning by talking with your tax advisor and Social Security to avoid any mistakes – and those pesky IRS penalties.
Read the article here==>The Surprise Tax Hit for Post-Medicare HSA Contributions.
I hope you found this valuable.
Patti Fagan, Licensed Agent
Victory Senior Benefits