A blog about Medicare. What you and your employees need to know

Advice – Stop Your HSA When You Get Part A

Author: Lora Drummond

Medicare Transition Specialist

Posted: 12/20/2021

50- 52 Solution Series – Advice -Stop your HSA when you get Part A

This is a reminder to help your employees manage their HSA contributions if they are thinking about enrolling in Medicare. 

HSA’s are tax-free savings so that when retirement rolls around, you’ll have savings designated for medical expenses. 

Contributions to HSA accounts must stop when an employee enrolls in Medicare.

 Highlights To Help:

  • To contribute to an HSA, you need to be enrolled in an HSA-qualified health plan with a high deductible. 
  • An (HSA) is an account you can use to pay for qualified medical expenses with pretax money.
  • Employees who decide to enroll in Part A are not eligible to contribute to a tax-deferred account any longer.
  • Employers must stop contributing to the employee’s HSA also.
  • When to stop contributing? We recommend stopping six months before they plan to apply for Medicare. 
  • If they keep working and stay on their employer plan AND enroll in Medicare Part A because it’s free – contributing to the HSA must stop!
  • They CAN use existing HSA funds to pay for some Medicare premium costs after enrolling in Medicare. Qualified healthcare costs can also still be paid from this account.
  • Employees receive a tax penalty on any money they contribute to an HSA once they enroll in Medicare.
  • If a person is already collecting Social Security upon turning age 65, he or she will be automatically enrolled in Medicare – therefore, cannot contribute to his or her HSA.

If an employee is on a creditable employee plan, we don’t recommend enrolling in Medicare too. Then they can keep contributing to the HSA and defer Medicare. We can help them evaluate when they should enroll and when they can safely defer their Medicare and stay on their employer plan.

For confident support, The Medicare Architects can partner with you to provide answers to employees turning 65 or retiring. Help them understand their options so they can make appropriate decisions and plan to avoid penalties later. 

Our services are at no charge to you or your employees – We are here to help!

Need guidance on how to support your employees with other possible scenarios and helpful solutions?

Our Certified Medicare Planners® have more than 20 years of experience helping employees create Medicare transition plans BEFORE they need to enroll. We are ready to help!

Continuing to provide Medicare guidance for your employees

in 2022.

Stop HSA when you get Part A

Create a compliant Medicare benefit support plan. Give your employees personal guidance from a team of experts that will follow them after they retire.

You can receive helpful Medicare resources, and tips and tricks to build your Medicare transition strategy just by signing up to receive a blog article a week delivered to your email. ( We promise only one per week and you can opt-out at any time)

Plus get early notifications of any NEW helpful resources and Medicare news!  SIGN UP BELOW!


Your Medicare Transition Partner
– Lora

Helpful Links

Get the latest reason you need a Medicare transition team right in your inbox!

A helpful simplified 2022 Medicare Planning Guide
65 and Counting Talk Show

Subscribe to Medicare@work

Get the latest reason you need a Medicare transition team right in your inbox!

Other Posts from Medicare@work

Stay Tuned! Medicare Help for Business is Here

Stay Tuned! Medicare Help for Business is Here

Don’t adjust your dial! Our Medicare help for businesses is now more accessible than ever. Stay tuned to your favorite social media sites for links to enjoy helpful topics for guiding employees with their options regarding Medicare. When folks turn 65, they have more healthcare choices. We are here to help!

Contact Us

(800) 568-1095

Brought to you from Scottsdale, AZ

Monday-Friday: 9am – 5pm

Get Started

Meet your dedicated Medicare Transition team today!
Share This