One important point he left out, use you traditional IRA as the source of your HSA funding, the tax you pay on the IRA withdrawal is offset by the deduction you get for the HSA contribution, making it an effective non taxable event. Strategy works from 59.5 until you sign up for Medicare.
Yes you can bro! My retirement health insurance is through my previous employer. It's a hsa high deductible plan. And I'll contribute to it until the month before my 65th bday.
Too late, it's six months before as @KatieLibby1315 notes. The reason for this dumbass rule is Medicare considers you covered for 6 months before your eligibility date, because they want to make sure you don't miss your Medicare application. Unfortunately this rule isn't waivable, like most government things it's one size fits all. I will be doing the same with an ACA plan.
Can you advise if I have a current HSA in my name - use it currently for both myself and wife HDHP premiums and our medical expenses - I go onto Medicare and **she still has a HDHP policy** ... can I still contribute to the existing HSA account (for her only, up to her eligibility limits) ... or must I create an individual HSA account for her in her name (to contribute up to her eligibility limits)? Thank you!
What happens to your account when you die? Can it be passed on? If able to pass it on, what is the taxation of the receipt and what do you use it for, medical only?
If the beneficiary is your spouse it becomes theirs and can be used as if it was their HSA. There is no tax hit. A non-spouse beneficiary takes the account's assets as their personal assets and pays income tax on the entire amount in the year of your death. The HSA is dissolved.
Can your younger spouse (under 65) contribute to an HSA if they have a HDHP HSA plan through healthcare.gov while you are on Medicare while you both file taxes jointly?
Yes. Medicare eligibility is personal even if you're married. There are no "family" Medicare plans. Age as such doesn't matter, if you have "large group" health coverage you can keep contributing to an HSA even after age 65. If you have small group or individual coverage then you must abandon it and take Medicare.
One important point he left out, use you traditional IRA as the source of your HSA funding, the tax you pay on the IRA withdrawal is offset by the deduction you get for the HSA contribution, making it an effective non taxable event. Strategy works from 59.5 until you sign up for Medicare.
Yes you can bro! My retirement health insurance is through my previous employer. It's a hsa high deductible plan. And I'll contribute to it until the month before my 65th bday.
I was told if you are taking SS benefits you have to stop funding HSA six months prior to turning 65.
Too late, it's six months before as @KatieLibby1315 notes. The reason for this dumbass rule is Medicare considers you covered for 6 months before your eligibility date, because they want to make sure you don't miss your Medicare application. Unfortunately this rule isn't waivable, like most government things it's one size fits all. I will be doing the same with an ACA plan.
Can you advise if I have a current HSA in my name - use it currently for both myself and wife HDHP premiums and our medical expenses - I go onto Medicare and **she still has a HDHP policy** ... can I still contribute to the existing HSA account (for her only, up to her eligibility limits) ... or must I create an individual HSA account for her in her name (to contribute up to her eligibility limits)? Thank you!
What happens to your account when you die? Can it be passed on? If able to pass it on, what is the taxation of the receipt and what do you use it for, medical only?
If the beneficiary is your spouse it becomes theirs and can be used as if it was their HSA. There is no tax hit. A non-spouse beneficiary takes the account's assets as their personal assets and pays income tax on the entire amount in the year of your death. The HSA is dissolved.
Can your younger spouse (under 65) contribute to an HSA if they have a HDHP HSA plan through healthcare.gov while you are on Medicare while you both file taxes jointly?
Yes. Medicare eligibility is personal even if you're married. There are no "family" Medicare plans. Age as such doesn't matter, if you have "large group" health coverage you can keep contributing to an HSA even after age 65. If you have small group or individual coverage then you must abandon it and take Medicare.