My wife and I are both over 65. We contributed to a HSA under my wife's employment (high deductible health insurance plan) until the last month she worked. We understand you can do this as long as we didn't apply for any SSA monthly benefits or any Medicare coverage (we didn't).
However, when we applied for Medicare to start the next month after she retired, Medicare enrolled us in Medicare B that month (
), but then 'backdated' our enrollment in Medicare A by six months (
). Now, if the IRS audits our tax return and compares it to SSA records, it may claim we were contributing to the HSA for six months while covered by Medicare A, which is a tax regulation violation. But we weren't covered by Medicare A while we were contributing, not at least until the SSA used some sort of time warp logic to go back in time six months and change what really happened the first time through???
Has anyone had this experience (caught by surprise by the 'backdating' policy)?
Is there a potential tax issue, or does the IRS accept HSA contributions being made under these circumstances?
Any comments on experiences or advice appreciated. I do know we cannot now opt out of the back-dated coverage unless we return all our benefits to date, which we don't plan to do, so that is not an option.
Actually, it strikes me that this situation would set up some very interesting arguments in a courtroom, competing timelines, that sort of sci fi logic. I'm thinking I would just as well bypass this excitement however, interesting as it might play out (
Thanks in advance.