Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Calculating HSA contribution for the year I start Medicare
Old 05-30-2023, 12:50 PM   #1
Recycles dryer sheets
BrianB's Avatar
 
Join Date: Jul 2011
Location: Minneapolis
Posts: 345
Calculating HSA contribution for the year I start Medicare

On 9/1/2023 I will start Medicare. DW will remain on our HDHP thru the end of the year (and 9 months of 2024). My understanding is that for 2023 we can contribute based on the "family" limit until my Medicare start date, then DW can contribute as a "single" through the rest of the year. We both qualify for the $1000 catch-up addition to the limits. It's a little complicated because the family limit is not exactly 2x the single limit. This is my calculation:

(8/12) * (7750+1000+1000) = $6500 that is $3250 for me + $3250 for DW
(4/12) * (3850+1000) = $1616 that is $0 for me + $1616 for DW
Total = $8116

Am I calculating this correctly? We want to max out our contributions but don't want to get into the hassle of over-contributing and having to correct it later.

BrianB
__________________
Good, Fast, Cheap: Pick 2
BrianB is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-30-2023, 01:16 PM   #2
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 39,363
Quote:
Originally Posted by BrianB View Post
On 9/1/2023 I will start Medicare. DW will remain on our HDHP thru the end of the year (and 9 months of 2024). My understanding is that for 2023 we can contribute based on the "family" limit until my Medicare start date, then DW can contribute as a "single" through the rest of the year. We both qualify for the $1000 catch-up addition to the limits. It's a little complicated because the family limit is not exactly 2x the single limit. This is my calculation:

(8/12) * (7750+1000+1000) = $6500 that is $3250 for me + $3250 for DW
(4/12) * (3850+1000) = $1616 that is $0 for me + $1616 for DW
Total = $8116

Am I calculating this correctly? We want to max out our contributions but don't want to get into the hassle of over-contributing and having to correct it later.

BrianB
Looks good to me.
MichaelB is online now   Reply With Quote
Old 05-30-2023, 01:19 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2016
Location: Northern Virginia
Posts: 6,927
Do you have two HSA accounts? Or just one.
Montecfo is offline   Reply With Quote
Old 05-30-2023, 01:22 PM   #4
Recycles dryer sheets
BrianB's Avatar
 
Join Date: Jul 2011
Location: Minneapolis
Posts: 345
Quote:
Originally Posted by Montecfo View Post
Do you have two HSA accounts? Or just one.
We have two, one in each of our names. I think that is the only way to get two catch-up contributions.
__________________
Good, Fast, Cheap: Pick 2
BrianB is offline   Reply With Quote
Old 05-30-2023, 01:49 PM   #5
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 39,363
Quote:
Originally Posted by BrianB View Post
We have two, one in each of our names. I think that is the only way to get two catch-up contributions.
That’s how I understand it.
MichaelB is online now   Reply With Quote
Old 05-30-2023, 01:52 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2016
Location: Northern Virginia
Posts: 6,927
Quote:
Originally Posted by BrianB View Post
We have two, one in each of our names. I think that is the only way to get two catch-up contributions.
Yes. Just being sure since that trips folks up sometimes.

Looks right to me.
Montecfo is offline   Reply With Quote
Old 05-30-2023, 02:54 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 36,139
Because we contributed monthly, each to their own HSA account, this was pretty straightforward as we were also on individual insurance policies. DH’s last contribution was the month before he was Medicare eligible.

Yes, your catch-up contribution is prorated by the months before 65.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 05-30-2023, 03:08 PM   #8
Thinks s/he gets paid by the post
Telly's Avatar
 
Join Date: Feb 2003
Posts: 2,395
IIRC,
There was something about stopping your personal HSA contribution 6 months before starting Medicare. Anybody remember that? Did this requirement go away recently?
__________________
-- Telly, the D-I-Y guy --
Two fools dancing on the hands of time
Telly is offline   Reply With Quote
Old 05-30-2023, 03:20 PM   #9
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 36,139
Quote:
Originally Posted by Telly View Post
IIRC,
There was something about stopping your personal HSA contribution 6 months before starting Medicare. Anybody remember that? Did this requirement go away recently?
Never seen that. DH certainly didn’t and the tax forms didn’t flag a problem. My understanding is that HSA contributions must stop the month you become eligible for Medicare.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 05-30-2023, 03:54 PM   #10
Thinks s/he gets paid by the post
Irishgirlyc58's Avatar
 
Join Date: Sep 2020
Posts: 1,029
Quote:
Originally Posted by Telly View Post
IIRC,
There was something about stopping your personal HSA contribution 6 months before starting Medicare. Anybody remember that? Did this requirement go away recently?

It’s my understanding that stopping HSA contributions 6 months prior to Medicare is for those who are still working and contributing to HSA past age 65 so when they apply for Medicare after 65 they could get retroactive MC for 6 months. So very individual circumstances.

I also start MC this September as well. I’m single so have determined that my prorated HSA contribution for this year is $3233- which is really close to the $3250 OP calculated. He gets slightly more because of the family contribution limit.
Irishgirlyc58 is offline   Reply With Quote
Old 05-31-2023, 12:31 PM   #11
Full time employment: Posting here.
 
Join Date: Feb 2019
Location: NC
Posts: 559
Quote:
Originally Posted by BrianB View Post
On 9/1/2023 I will start Medicare. DW will remain on our HDHP thru the end of the year (and 9 months of 2024). My understanding is that for 2023 we can contribute based on the "family" limit until my Medicare start date, then DW can contribute as a "single" through the rest of the year. We both qualify for the $1000 catch-up addition to the limits. It's a little complicated because the family limit is not exactly 2x the single limit. This is my calculation:

(8/12) * (7750+1000+1000) = $6500 that is $3250 for me + $3250 for DW
(4/12) * (3850+1000) = $1616 that is $0 for me + $1616 for DW
Total = $8116

Am I calculating this correctly? We want to max out our contributions but don't want to get into the hassle of over-contributing and having to correct it later.

BrianB

Glad you posted! I start Medicare on Aug1. Not to hijack your thread but would my calculation be...

(7/12) * (7750+1000+1000) = $5687 that is $2843 for me + $2843 for DW
(5/12) * (3850+1000) = $2020 that is $0 for me + $2020 for DW
Total = $7707

DW = 3864 + 1000 (catchup) = 4864
Me = 2260 + 583 (catchup) = 2843

Total = $7707
Born2Fish is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
HSA Contribution for last year worked a60dan Other topics 5 07-04-2021 12:42 PM
HSA Contribution in year turning 65 - Please check my math! Potstickers FIRE and Money 9 07-20-2020 12:04 PM
HSA contribution and start medicare Karl Health and Early Retirement 8 03-13-2019 06:36 PM
HSA contribution with SS pre Medicare? Sue J Health and Early Retirement 2 11-03-2018 12:38 PM
Looking for information about HSA contribution in year switching from ACA to Medicare Tom52 Health and Early Retirement 13 07-20-2017 09:25 AM

» Quick Links

 
All times are GMT -6. The time now is 04:17 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.