Well, this is helpful.
In an effort to assist investors, plan participants, retirement savers and (yes) advisors, HealthSavings Administrators has published a guide with important information about health savings accounts, and specifically how they interact with Medicare.
For instance, “If you have money in an HSA, you can still take distributions even when you are enrolled in Medicare. In other words, your HSA money is still your money and you can use it to pay for eligible expenses.”
Also, “…if one spouse is enrolled in Medicare, but the other spouse is still eligible for an HSA, the eligible spouse can open and fund an HSA.”
Developed in conjunction with Houston-based HR law firm Verberne x Maldonado, LLP, the guide, appropriately titled “A Guide to Health Savings Accounts and Medicare” is a free, 26-page booklet covering the basics of health savings accounts and Medicare, as well as how each program impacts the other.
Claiming to be “among the top 1 percent of the nation’s HSA investment companies in accounts and assets,” HealthSavings’ says its emphasis is on helping individuals understand the value of HSAs as part of a comprehensive retirement planning strategy.
“As HSA accountholders near retirement, questions often arise about the impact of Medicare on their HSA,” it adds. “For example, account holders enrolling in Medicare Parts A and/or B can no longer contribute to their HSAs. But this seemingly clear rule often generates more questions—like whether a spouse may continue to contribute to that HSA, what expenses continue to be reimbursable, and how to prorate contributions. The guidebook provides clear and simple answers to these questions and more.”
“We wanted to provide some clarity around a topic that is confusing for many HSA accountholders,” Kirk Hoewisch, President of HealthSavings, said in a statement. “By providing clarity, our hope is that account holders feel confident continuing to maximize and utilize their HSAs to their fullest potential throughout their retirement.”
Founded in 1996, HealthSavings got its start a medical savings account (MSA) administrator and shifted focus to HSAs after the legislation enacting HSAs passed in January 2004.
The company manages nearly $600 million in investments with clients in all 50 states, including employer groups, brokers, financial advisors and individual investors.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
