hsa question when on medicare

Feb 4, 2019

  1. kstein
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    kstein Guru

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    I'm getting an email ready for my financial advisor email distribution and am wanting to explain the HSA/Part A/working past 65 situation. Anyone have a critique to the example below? Main question is if the "catch up contribution" is also pro rated based off of enrollment dates.

    Example:


    Client age 68 contributes the maximum amount into his HSA ($3,500 +$1,000 catch up contribution for a total of $4,500) for 2019. They have delayed Medicare Part A and B enrollment due to being covered by the employer. They now decide to retire 1/1/20 and enroll into Medicare Part A/B in December. The Part A effective date will be 7/1/19 and the Part B effective date will be 1/1/20. In this situation, the client can only contribute 6/12th's of the $4,500 into the HSA or $2,250.
     
    kstein, Feb 4, 2019
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  2. LostDollar
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    LostDollar Guru

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  3. kstein
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    kstein Guru

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    thanks, that was helpful.
     
    kstein, Feb 4, 2019
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  4. WCMason
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    WCMason Guru

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    In this situation yes. It may be 5/12 though instead of 6/12. A Dec. application for Part A should get a Jun. 1 Part A start date.
     
    WCMason, Feb 4, 2019
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