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.
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.
