Staying Fit
Yes, but you can’t contribute to a health savings account (HSA) after you enroll in Medicare.
You can use money you’ve accumulated tax-free in an HSA for eligible medical expenses at any time. After you turn 65, you can even withdraw money tax-free from an HSA to pay your Medicare premiums.
An HSA is a tax-advantaged way to save for out-of-pocket medical expenses. Your contributions are tax deductible if you set up your own account, and they are pretax — lowering your taxable income — if made through an employer plan.
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The money grows tax-deferred in the account, and you can withdraw it tax-free for eligible health care expenses during any year.
In 2023, you can contribute to an HSA if you haven’t enrolled in Medicare and you have an HSA-eligible health insurance policy with a deductible of at least $1,500 for yourself only or $3,000 for family coverage. This increases to $1,600 and $3,200 in 2024. You can be eligible for an HSA whether you get the insurance through your employer or on your own.
In 2023, you can contribute up to $3,850 if you have self-coverage or up to $7,750 for family coverage — plus a $1,000 catch-up contribution if you’re 55 or older. You have until the tax filing deadline to contribute, which is April 15, 2024, for 2023 contributions.
The contribution limits increase significantly in 2024. You can contribute up to $4,150 if you have a self-only plan or $8,300 for family coverage, plus the $1,000 catch-up contribution if you’re 55 or older.
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Errors can prove costly to new enrolleesDoes Medicare Cover All the Costs for My Health Care?
No. You will have various out-of-pocket expenses