HSA Confusion

[JStar1]

I have a situation where the primary member of a group plan is staying on the plan while continuing to make HSA contributions, and the spouse/dependent wants to leave the plan and go on Medicare. Will she be able to enroll in Medicare without tax penalties if she herself hasn't made HSA contributions? Thanks in advance.

 

[Special Agent]

I have a situation where the primary member of a group plan is staying on the plan while continuing to make HSA contributions, and the spouse/dependent wants to leave the plan and go on Medicare. Will she be able to enroll in Medicare without tax penalties if she herself hasn't made HSA contributions? Thanks in advance.

as long as no HSA contributions have been made 6 month prior to part A effective date she should be good however i thought usually group HSA plan contributions are for employee and spouse

 

[ValeRosso]

Once the spouse goes onto medicare, the main owner of the HSA can still contribute and does not affect the spouse going to Medicare. Its based on the owner of the HSA, not the spouse or dependants.

 

[JStar1]

Thank you.

 

[LostDollar]

I have a situation where the primary member of a group plan is staying on the plan while continuing to make HSA contributions, and the spouse/dependent wants to leave the plan and go on Medicare. Will she be able to enroll in Medicare without tax penalties if she herself hasn't made HSA contributions? Thanks in advance.

Caveat, not an agent.

The posts in your thread do raise a point.

If your prospect is making family contributions, rather than individual contributions, to the HSA, there is an issue that will need to be worked out.

 

[somarco]

owner of the HSA can still contribute and does not affect the spouse going to Medicare.

Kind of . . .

The HSA is the bank account holding the funds. Unless things have changed the account is not "titled" in the name of one or more individuals.

The HSA holds funds that can be used for covered medical expenses for yourself, your spouse as well as eligible dependents (parents, siblings, etc.) as defined by Section 152 of the tax code. Covered expenses include health care, dental & vision expenses.

Contributions to the HSA can be made on behalf of individuals who are not currently enrolled in Medicare A or B.

 

[LostDollar]

Kind of . . .

The HSA is the bank account holding the funds. Unless things have changed the account is not "titled" in the name of one or more individuals.

The HSA holds funds that can be used for covered medical expenses for yourself, your spouse as well as eligible dependents (parents, siblings, etc.) as defined by Section 152 of the tax code. Covered expenses include health care, dental & vision expenses.

Contributions to the HSA can be made on behalf of individuals who are not currently enrolled in Medicare A or B.

Caveat, NOT an agent.

Ours (at local brick and mortar financial institution) is "titled" in my wife's name. My access to the account is limited to spending via the card in my name which she had to authorize.

I can make deposits but the teller has to get supervisor approval before the transaction can be finalized.

 

[Jim Wright]

Once the spouse goes onto medicare, the main owner of the HSA can still contribute and does not affect the spouse going to Medicare. Its based on the owner of the HSA, not the spouse or dependants.

Only thing to pay attention to here is that the contribution limit is different for Single Coverage and Family Coverage. Employee can still contribute but not as much. They will also prorate the months if they are only eligible to contribute the family amount for part of the year.

 

[bill3173]

You can max (family) fund an HSA, as long as you're not on Medicare. Your spouse can enjoy the french benefit of having the $$ available for her medical expenses.

 

[LostDollar]

You can max (family) fund an HSA, as long as you're not on Medicare. Your spouse can enjoy the french benefit of having the $$ available for her medical expenses.

Caveat, not an agent.

You're saying a person covered by an HDHP can make a family contribution to HSA even if spouse is not covered by the HDHP?