Can I still contribute to my HSA after 65?

Asked by: Adella Padberg  |  Last update: September 19, 2025
Score: 4.9/5 (59 votes)

If you are not enrolled in Medicare and are otherwise HSA eligible, you can continue to contribute to an HSA after age 65. You are also allowed to contribute the $1,000 catch-up. If you signed up for Medicare Part A and now want to decline it, you can do so by contacting the Social Security Administration.

What happens if I contribute to my HSA after age 65?

If you work beyond age 65 and defer Medicare, however, you will need to stop contributing to your HSA six months prior to receiving Social Security. Once you begin drawing Social Security after your full retirement age, you are required to have Medicare coverage and can no longer contribute to an HSA.

At what age can you no longer contribute to an HSA?

You lose eligibility as of the first day of the month you turn 65 and enroll in Medicare. Example. Sally turns 65 on July 21 and enrolls in Medicare. She is no longer eligible to contribute to her HSA as of July 1.

At what point should I stop contributing to my HSA?

Comments Section
  • Make sure all HSA contributions end before your 65th birthday month.
  • If your birthday is on the first of the month, make sure you stop your contributions by the beginning of the month before your birthday month.

What is the penalty for contributing to an HSA while on Medicare?

If you or any other authorized party, like an employer, make excess contributions to your HSA once you have Medicare, you can be charged a 6% Internal Revenue Service tax penalty on those funds and any interest they accrue until the funds are removed from your account.

Can I Contribute To My HSA When I Turn 65?

25 related questions found

Do I have to stop HSA contributions 6 months before Medicare?

What to do with your HSA if you get Medicare Part A. If you have to (or choose to) enroll in Medicare Part A, the coverage is retroactive for up to 6 months, but no earlier than your eligibility date. Because of this, you should plan to stop HSA contributions around 6 months before enrolling in Medicare.

What disqualifies you from contributing to an HSA?

If you can receive benefits before that deductible is met, you aren't an eligible individual. Other employee health plans. An employee covered by an HDHP and a health FSA or an HRA that pays or reimburses qualified medical expenses can't generally make contributions to an HSA. FSAs and HRAs are discussed later.

What is the 6 month rule for HSA?

Under current regulations, individuals who apply for Medicare Part A or Part B after reaching age 65 are automatically given six months of retroactive health coverage, which invalidates their ability to make or receive HSA contributions for any of those months they were deemed to be covered.

Can you collect Social Security and still contribute to an HSA?

If you have applied for or are receiving Social Security benefits, which automatically entitle you to Part A, you cannot continue to contribute to your HSA.

How much can I contribute to my HSA the year I go on Medicare?

No. You lose HSA eligibility once you enroll in Medicare, so you can't make additional contributions. You can contribute for months that you were eligible before you enrolled in Medicare.

What is the downside of an HSA?

Drawbacks of HSAs include tax penalties for nonmedical expenses before age 65, and contributions made to the HSA within six months of applying for Social Security benefits may be subject to penalties. HSAs have fewer limitations and more tax advantages than flexible spending accounts (FSAs).

How much should I have in my HSA at retirement?

The amount of money you should have in your HSA during retirement depends on your healthcare needs and circumstances. According to the Fidelity Retiree Health Care Cost Estimate, a single person who is age 65 in 2023 should aim to have about $157,000 saved (after tax) for healthcare expenses during retirement.

Can I use HSA to pay Medicare premiums?

You can use your HSA to pay certain Medicare expenses, including premiums for Part A, Part B, Part C (Medicare Advantage), and Part D prescription drug coverage, but not supplemental (Medigap) policy premiums.

Does it make sense to contribute to HSA after retirement?

Post-Retirement Contributions

Someone who wants to keep making contributions after retirement can do so by either not enrolling in Medicare or by withdrawing from the program. While rare, both are options. However, it is unlikely that this would make sense financially.

At what age can you no longer have an HSA?

When you turn 65 and begin Medicare coverage, you lose HSA eligibility on the first day of that month. For example, if your birthday is April 19, you are no longer eligible to contribute to an HSA as of April 1.

Do you pay taxes on HSA funds after 65?

Plus, after you reach age 65, you can even use your HSA to pay for expenses beyond healthcare. You will need to pay regular federal income taxes on those non-qualified withdrawals, but the 20% additional tax (see No. 6) no longer applies.

What is the penalty for HSA after 65?

Your HSA as a retirement account

If you withdraw money from your HSA for something other than qualified medical expenses before you turn 65, you have to pay income tax plus a 20% penalty. But after you turn 65, that 20% penalty no longer applies and you only pay income tax!

At what age is Social Security no longer taxed?

Social Security income can be taxable no matter how old you are. It all depends on whether your total combined income exceeds a certain level set for your filing status. You may have heard that Social Security income is not taxed after age 70; this is false.

When should you not contribute to HSA?

You're getting close to age 65 or you're no longer eligible

Once you hit 65, you can withdraw your HSA funds for non-medical expenses without penalty and pay only income taxes. But you may want to stop contributing then, too, since you may be eligible for Medicare.

What is the loophole for HSA retirement?

For those reasons, it's important to consider whether taking money from an HSA to fund retirement expenses other than medical care makes sense. If you can wait until you're at least 65 to make non-qualified withdrawals, you can avoid the 20% tax penalty.

Can you make HSA contributions after age 65?

If you are not enrolled in Medicare and are otherwise HSA eligible, you can continue to contribute to an HSA after age 65. You are also allowed to contribute the $1,000 catch-up. If you signed up for Medicare Part A and now want to decline it, you can do so by contacting the Social Security Administration.

Can you use HSA for dental?

Your HSA also covers expenses for standard dental cleanings and dental check-ups. One thing to keep in mind is that some of these procedures may have a co-payment, so it's important that you check with your dental insurance provider to find out exactly what you'll have to pay out of pocket.

Can I contribute to an HSA the year I start Medicare?

Medicare enrollment

Once you are enrolled in any part of Medicare, you will not be eligible to contribute to an HSA in the months following your Medicare effective date. A pro-rated contribution must be determined for the year in which Medicare becomes effective (see reverse side for more details).

Should you ever stop contributing to HSA?

If you don't use it for qualified medical expenses, it counts as income when you file your taxes. Six months before you retire or get Medicare benefits, you must stop contributing to your HSA. But, you can use money left in your HSA to help pay for qualified medical expenses that Medicare doesn't cover.

Do HSA contributions reduce social security benefits?

Employee Benefit Research Institute Issue Brief No. 579. 2 Contributions are also exempt from Federal Insurance Contributions Act (FICA) taxes for Social Security and Medicare if made through a salary reduction agreement with an employer, but this may lead to lower Social Security benefits.