HSA Contributions After Spouse Becomes Covered By Medicare - Contribution Limits

[jnindel]

What is the name of your state? California

I am retired from the federal government which provides my spouse and me with FEP Blue Cross insurance in retirement. My spouse is also retired, and is covered by my federal government health insurance.

My spouse recently became covered by Medicare Part A.

We have had a Health Savings Account for several years and have contributed yearly.

I understand that once a spouse enrolls in Medicare, he/she cannot continue to contribute to an HSA, but can continue to withdraw funds from the account for authorized medical expenses. The spouse who is not on Medicare (myself) can continue to contribute to an HSA and draw down funds until that spouse (meaning me) enrolls in Medicare at age 65.

My question is, must I open a NEW separate HSA account for myself for future contributions, and only have my spouse draw-down under the existing one because of being on Medicare? Is that the only way that I can continue to contribute to an HSA until age 65? And, how much can I contribute in 2020 if I can continue to contribute but my spouse cannot? What is the specific amount that I can contribute this year?

 

[Zigner]

This does not address your question at all and is merely an aside. I notice that in 2016 you were a full-time resident of Florida, but now you list your state as California. It's odd to hear of somebody moving TO California lately.

(Now, back to the question at hand...)

 

[LdiJ]

What is the name of your state? California

I am retired from the federal government which provides my spouse and me with FEP Blue Cross insurance in retirement. My spouse is also retired, and is covered by my federal government health insurance.

My spouse recently became covered by Medicare Part A.

We have had a Health Savings Account for several years and have contributed yearly.

I understand that once a spouse enrolls in Medicare, he/she cannot continue to contribute to an HSA, but can continue to withdraw funds from the account for authorized medical expenses. The spouse who is not on Medicare (myself) can continue to contribute to an HSA and draw down funds until that spouse (meaning me) enrolls in Medicare at age 65.

My question is, must I open a NEW separate HSA account for myself for future contributions, and only have my spouse draw-down under the existing one because of being on Medicare? Is that the only way that I can continue to contribute to an HSA until age 65? And, how much can I contribute in 2020 if I can continue to contribute but my spouse cannot? What is the specific amount that I can contribute this year?

The contribution limits for a one person HSA are $3550 plus $1000 catch up for people over 55 for 2020. The limits for 2021 are $3600 Plus $1000 catch up.

I would open a new HSA account for yourself, and let your husband draw down the existing one. Otherwise you are likely to have to constantly answer questions about why new contributions are being made to an account that probably has your husband listed on it first and therefore gets reported under his SSN

 

[jnindel]

The contribution limits for a one person HSA are $3550 plus $1000 catch up for people over 55 for 2020. The limits for 2021 are $3600 Plus $1000 catch up.

I would open a new HSA account for yourself, and let your husband draw down the existing one. Otherwise you are likely to have to constantly answer questions about why new contributions are being made to an account that probably has your husband listed on it first and therefore gets reported under his SSN

Thanks very much!