There is also the rule about contributions to an HSA while on Medicare.
If you delay Medicare enrollment and sign up later, Part A can apply retroactively for up to six months, which can cause previous HSA contributions to be treated as "excess" and subject to tax penalties.
Fair point. My goal was to explain the problem before getting to the practical steps, but I can see why some readers would prefer the action items earlier. I appreciate the feedback.
Do you suppose you could have put the "what to do about it" at the beginning of the article. Not quite sure if that is even included after wading through all the excess verbiage.
There is also the rule about contributions to an HSA while on Medicare.
If you delay Medicare enrollment and sign up later, Part A can apply retroactively for up to six months, which can cause previous HSA contributions to be treated as "excess" and subject to tax penalties.
Thank you for sharing something I'm betting not a lot of people know about.
Fair point. My goal was to explain the problem before getting to the practical steps, but I can see why some readers would prefer the action items earlier. I appreciate the feedback.
Do you suppose you could have put the "what to do about it" at the beginning of the article. Not quite sure if that is even included after wading through all the excess verbiage.
https://www.medicare.gov/basics/get-started-with-medicare/sign-up/when-can-i-sign-up-for-medicare
Maybe this will help.
Excellent! Thank you for sharing.