[valuemkt]

If you are on Medicare you are not eligible to contribute tax free to an HSA.

[bsloan1960]

Originally Posted by valuemkt

If you are on Medicare you are not eligible to contribute tax free to an HSA.

Even if you have private insurance- such as BC/BS>

[retiredguy123]

Originally Posted by bsloan1960

Even if you have private insurance- such as BC/BS>

Yes. Having Medicare is a disqualifier for HSA contributions?

[Haggar]

Originally Posted by retiredguy123

As I understand it, all HSA contributions are tax deductible. From "investmentfirms.com":

"How Do I Know If My HSA Contributions Are Tax Deductible?
All HSA contributions are tax deductible. The earnings from investments made through your HSA as well as withdrawals for medical expenses are also tax deductible. The tax advantages provided by an HSA makes it very attractive compared to more traditional types of medical coverage."

Only qualified contributions are tax deductible. If you add extra money above the allowed and qualified limits it is not tax deductible.

The qualified contributions are tax deductible. The withdrawals for medical expenses are not tax deductible. They are not taxable income..

The earnings are also not tax deductible. These earnings are not taxed.

[Haggar]

Originally Posted by bsloan1960

Even if you have private insurance- such as BC/BS>

As long as you are not on medicare OR SOMETHING like a medicare advantage plan and have a high deductible plan you can contribute.

By the way a 6% tax on excess contributions each year until they are removed from the HSA.

[retiredguy123]

Originally Posted by Haggar

Only qualified contributions are tax deductible. If you add extra money above the allowed and qualified limits it is not tax deductible.

The qualified contributions are tax deductible. The withdrawals for medical expenses are not tax deductible. They are not taxable income..

The earnings are also not tax deductible. These earnings are not taxed.

Why would you make a non-qualified contribution to an HSA? To me, that would make no sense. Basically, it would be a mistake and not considered part of the HSA account. And, it would have no special tax treatment.

[jump4]

Originally Posted by retiredguy123

I am not an expert on HSA's, but it seems to me that you could deposit the money into a Fidelity Investment account, and buy CDs or bonds and let the money accumulate tax free. You don't need to spend it until you need it. And, as long as you eventually use the money for qualified medical expenses, the earnings would not be taxed. I would suggest calling Fidelity and asking them what investment options you would have with their HSAs accounts. They also have an office at Lake Sumter.

Fidelity is the best for HSAs (google Moringstar review of HSAs). Fidelity charges no fees for the HSA account, and offers some zero to low cost investment options.