Devin01
Guru
- 430
Here is one for the group and wondering how folks have dealt with this in the past.......
Client retiring in November and going off their group plan. They currently have an HSA in the group plan and would like to continue contributing to that until November but the below is a concern for them (and me) and we’re wondering why this is the case and what would trigger this penalty?
HAs anyone been through this and does Medicare/Social Sec actually look back 6 months and impose the penalty ????
The below came from https://www.medicareinteractive.org/…/health-savings-accoun…
“Finally, if you decide to delay enrolling in Medicare, make sure to stop contributing to your HSA at least six months before you do plan to enroll in Medicare. This is because when you enroll in Medicare Part A, you receive up to six months of retroactive coverage, not going back farther than your initial month of eligibility. If you do not stop HSA contributions at least six months before Medicare enrollment, you may incur a tax penalty.”
Client retiring in November and going off their group plan. They currently have an HSA in the group plan and would like to continue contributing to that until November but the below is a concern for them (and me) and we’re wondering why this is the case and what would trigger this penalty?
HAs anyone been through this and does Medicare/Social Sec actually look back 6 months and impose the penalty ????
The below came from https://www.medicareinteractive.org/…/health-savings-accoun…
“Finally, if you decide to delay enrolling in Medicare, make sure to stop contributing to your HSA at least six months before you do plan to enroll in Medicare. This is because when you enroll in Medicare Part A, you receive up to six months of retroactive coverage, not going back farther than your initial month of eligibility. If you do not stop HSA contributions at least six months before Medicare enrollment, you may incur a tax penalty.”