What happens after you retire?

Once you enroll in Medicare Part A and/or Part B, you can no longer contribute to your HSA. But that does not mean you can no longer benefit from your HSA and the funds available within it. The money is still yours, and it could be a considerable amount if you’ve been building it over a number of years.

Catch up contribution period

Once you turn 55, you can contribute an additional $1,000 each year to your HSA, on top of the yearly maximum amount. This is called a catch-up contribution.

If you and your spouse are both over the age of 55, you can each contribute an additional $1,000. Your spouse will just need to open his or her own HSA to qualify.

HSAs and Medicare

It's important to maximize your HSA contributions before you retire. Once you enroll in Medicare you can no longer contribute funds to your HSA.

Even during retirement you can still purchase qualified medical expenses that are tax free. You can also use your HSA to pay for Medicare premiums and qualified out-of-pocket expenses including deductibles, copays and coinsurance for: