Contributing to a HSA after retirement

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paulwhart
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Joined: Wed Dec 13, 2017 6:57 pm

Contributing to a HSA after retirement

Post by paulwhart » Wed Dec 13, 2017 7:25 pm

I retired at the end of 2015. I had (and still have) a qualified HSA through BenefitWallet - Pittsburgh, PA. Throughout 2016, I continued to receive health care coverage through the same provider that I had when employed (Anthem) through COBRA and company Retiree Medical which allowed contributions to the HSA. For 2017, the provider was, again, Anthem, but no HSA contributions were made as my income was limited to qualified IRA funds.

Can I contribute to my HSA from my IRA funds and then take the IRS form 1040 line 25 deduction (Health savings account deduction) and shelter the tax on the amount contributed to my HSA ?

curmudgeon
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Re: Contributing to a HSA after retirement

Post by curmudgeon » Wed Dec 13, 2017 9:03 pm

If you have HSA-eligible insurance (and not on Medicare), then you should be able to contribute to your HSA from whatever funds you choose. Contributions don't have to go through your employer. HSA contributions can balance against a wide range of income (Roth conversions, IRA/401K withdrawals, dividends/interest, cap gains...) to reduce taxes owed.

Oh, and my understanding is that you can even make the 2017 HSA contributions up until the April tax filing deadline, similar to IRA contributions.

FrankLUSMC
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Re: Contributing to a HSA after retirement

Post by FrankLUSMC » Wed Dec 13, 2017 9:14 pm

I don't think Cobra qualifies as a HDHP plan for HSA contributions.
You can pay your Cobra premiums from the HSA though.
Sounds like you can afford to pay out of pocket.

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JDCarpenter
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Re: Contributing to a HSA after retirement

Post by JDCarpenter » Wed Dec 13, 2017 9:51 pm

FrankLUSMC wrote:
Wed Dec 13, 2017 9:14 pm
I don't think Cobra qualifies as a HDHP plan for HSA contributions.
You can pay your Cobra premiums from the HSA though.
Sounds like you can afford to pay out of pocket.
COBRA isn't a health plan. It is merely a means of getting the plan. HDHP paid for as result of COBRA is eligible for HSA. We did it for half of this year after we retired, and will fully fund HSA next year via COBRA/HDHP. Here is one source that goes through it: https://www.benstrat.com/downloads/HSA- ... -COBRA.pdf (search the web for "HDHP Through COBRA" for many more).

On OP's question, +1 Curmudgeon's comment.
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mhalley
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Re: Contributing to a HSA after retirement

Post by mhalley » Thu Dec 14, 2017 4:52 pm

I retired and have an HSA eligible health plan. I deduct the HSA contribution, and since my premiums are so high I deduct the amount over 10% if my income as well.

bberris
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Re: Contributing to a HSA after retirement

Post by bberris » Thu Dec 14, 2017 10:37 pm

Unlike an IRA, you don't need earned income to contribute to an HSA. You can even contribute the money you took out of the HSA, and if you use the withdrawals for qualified medical, dental and vision they are tax free. I use it to the maximum every year, and boost the contribution by 1,000 in my spouse's account.

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