HSA News for August 3, 2026
HSA news is compiled by Mr. HSA, Roy Ramthun.
Compliance Corner
Can Employers Contribute to HSAs of Workers Covered on Medicare Part A?
HSA owners cannot make contributions to their HSA for any month that they are covered by Medicare. The statute does not distinguish between the different Parts of Medicare -- enrollment in any Part of Medicare is disqualifying. Note that the disqualification is due to enrollment in Medicare, not merely Medicare eligibility.
HSA Studies & Analysis
Medicare Backdated His Coverage Six Months. His HSA Contributions Became a Tax Problem.
A 66-year-old software engineer decides to work one more year. When he finally retires in July and applies for Medicare, his Part A coverage is backdated six months. Every HSA contribution he made in the first half of the year is now an excess contribution unless he corrects it by the tax deadline. This is the trap that catches people who work past 65 and think they are doing everything right.
Market Trends
Fidelity Says a Retired Couple May Need $371,000 for Healthcare. That Is Before Long-Term Care.
A married couple retiring at 65 this year should plan for roughly $371,000 in healthcare costs across retirement, according to the latest estimate from Fidelity. If the number surprises you, it should. Routine dental work and years of help with bathing, dressing, or eating largely sit outside the Medicare program. That is where the $371,000 estimate ends and the bigger risk begins.
HSAs & Retirement
How Much Will Medical Coverage and Care Cost in Retirement? Really? Ouch!
A survey conducted by Fidelity estimates that 54% of Americans believe that they will not pay premiums, deductibles, coinsurance, or copays for medical coverage and care in retirement. They could not be more wrong. Medicare is not free. Create a plan, execute that plan, and the financial path may be much less treacherous.
As Retiree Healthcare Costs Keep Rising, Planning Ahead Can Help
Healthcare should be treated as a major retirement expense, not an afterthought. Advisors recommend discussing it years before retirement so clients have time to accumulate dedicated savings, maximize HSA contributions, choose an appropriate retirement date, evaluate Medicare options, and prepare for the possibility of long-term care costs.
Schwab Names the No. 1 Risk That Could Derail Retirement
A well-funded retirement portfolio, decades of maximum contributions, and a carefully timed Social Security claiming strategy can provide a strong financial foundation. But one expense -- long-term care -- has the power to permanently drain a nest egg, and the vast majority of retirees never budget for it.
4 Retirement Health Care Decisions to Get Right
Many health coverage decisions around retirement are time sensitive, and if you miss the window, the costs can last for years. That oversight can be costly. The good news is that planning ahead may help you manage some of those costs and avoid choices that are hard to unwind.
Maximizing Your HSA
He’s Photographed Every Medical Receipt Since 2016. At 65, His HSA Owes Him $43,000 Tax-Free
If you have a Health Savings Account, you already own the closest thing the tax code offers to a time machine. Pay a medical bill out of pocket today, photograph the receipt, and you can reimburse yourself, tax-free, five, ten, or thirty years from now. That is the HSA receipt-hoarding strategy, and it is why one 65-year-old with a decade of saved receipts is sitting on a $43,000 tax-free withdrawal he can pull whenever he wants.
The Common HSA Mistake That Could Cost You in Retirement
HSAs are one of the best ways to save for medical expenses. But many people are not taking advantage of the HSA’s triple tax advantages, with nearly two-thirds of HSA holders primarily using their accounts to pay current or near-term health care expenses instead of building up savings for their older (and often more expensive) years.