Is this IEP Med Supp sale valid?

[WCMason]

Question...how do you get around this? I have always interpreted it to mean at Age 65 and Part A, you can no longer contribute to an HSA.

Not be covered by Medicare (but the individual can be HSA eligible for the months before being covered by Medicare)

The way around it is to not sign up for Part A, which one can do if they have never applied for Social Security benefits.

 

[kgmom219]

The way around it is to not sign up for Part A, which one can do if they have never applied for Social Security benefits.

Thanks guys!

I have never had someone not have creditable coverage with group, but good to know.

 

[WCMason]

Generally, someone still working with group coverage at age 65 will only trigger Part A. Not Part B. If they have an HSA they are contributing to, don't enroll in Part A. Hopefully, LostDollar can clarify this better for me.

Someone still working with group coverage at 65 never triggers Part A. Only an application for Social Security benefits will trigger Part A. But you are right that the simple way to contribute to the HSA past 65 without possible tax penalties is to stay away from any part of Medicare, and remember that Part A is backdated six months once applied for. The HSA contributions must be pro-rated for that year based on the backdated effective date, not the month the application was submitted.

 

[DS4]

Someone still working with group coverage at 65 never triggers Part A.

I have all my age 65 clients who are still working(w/o HSA's) trigger Part A. Very simple to do at Medicare's web site.

 

[WCMason]

I have all my age 65 clients who are still working(w/o HSA's) trigger Part A. Very simple to do at Medicare's web site.

Then "trigger" is used in a confusing way. You said having an employer plan "triggers" Part A but does not "trigger" Part B. If by trigger you mean they can take action to sign up for it, how is Part A triggered but not Part B? It's as easy as checking one box to sign up for both.

 

[DS4]

Trigger=Elect, sorry for the confusion.

 

[WCMason]

Trigger=Elect, sorry for the confusion.

Thanks. Sounds like your comment that at 65, for those who are still working, Part A is triggered but Part B is not was just a slip.