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04-01-2017 10:11 PM
I would like to make the maximum 2017 contribution of $7,750 to my HSA account before I enroll in Medicare Part A and become subject to the prohibition on contributing to HSA accounts. I would like to know if the strategy I describe below would accomplish that goal without incurring tax penalties (or other such problems).
Background Info: I recently turned 65. My wife will not turn 65 until later in 2018. I am still employed, have a qualified health insurance plan (no penalty for delaying Medicare), and do not plan to retire until at least next year. I am aware of the retroactive 6-month coverage once I enroll in Part A, which effectively prohibits me from contributing to an HSA account for 6 months prior to enrolling--that is central to my question, below. … The problem is that my employer contributes $125 to my account every month, and I was told that those contributions would not be exempt from the "6-month prior" prohibition. (Even with a 20% penalty, it would not make sense to stop these payments.)
Would this allow me to make the maximum 2017 family contribution without violating limits and prohibitions, or would the post-May employer contributions be treated differently than would "normal" excess contributions?
04-08-2017 04:41 PM
Follow up: an H&R Block agent, in an online chat, confirmed that this would work--I could remove my excess contributions before taxes were due to avoid paying the penalty.