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Old 03-02-2017, 06:14 PM
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HSA Disbursements

I have had an HSA account for several years. Now that both my wife and I are retired and over 65 I read that Medicare Insurance premiums for Part B and Medicare Advantage plans can be paid from an HSA account. For 2016, and currently, we have these premiums deducted from our Social Security payment. Questions: Can I take a disbursement out of my HSA account now (March of 2017), for the payments we made in 2016 and declare that amount on IRS form 8889 for my 2016 taxes?



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Old 03-03-2017, 08:01 AM
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I have had an HSA account for several years. Now that both my wife and I are retired and over 65 I read that Medicare Insurance premiums for Part B and Medicare Advantage plans can be paid from an HSA account. ===>> Basically, when you turn 65 and enroll in Medicare, you can?t contribute to your HSA anymore. But you can keep using your account tax-free for qualified out-of-pocket health care expenses.You can also pay your Medicare premiums, deductibles, copays and coinsurance;Pay your share of retiree medical insurance premiums through your former employer... I mean, you, as Medicare beneficiary, can use HSA distributions to pay for qualified medical expenses, such as premiums for Part B, a Medicare Advantage plan (Part C), a prescription drug plan (Part D), and long-term care insurance, and Medicare expenses, such as copayments and deductibles. But, while you can use HSA distributions to pay Medicare premiums, these funds cannot pay premiums for Medicare supplemental policies, also known as Medigap policies.


For 2016, and currently, we have these premiums deducted from our Social Security payment. ======>> once you?re receiving Social Security benefits, then your premiums will be deducted from your monthly benefits. If you contributed to your HSA before you signed up for Medicare, you can withdraw money from the HSA tax-free to pay your Medicare premiums, and you can even reimburse yourself for the premiums if they are automatically deducted from your Social Security payments. You can also pay your spouse?s Medicare premiums with the HSA money, as long as you are 65 or older. Medicare doesn't permit individuals to retain Social Security benefits and waive Medicare. This means that an employee would need to waive both Medicare and Social Security to contribute to an HSA.

Questions: Can I take a disbursement out of my HSA account now (March of 2017), for the payments we made in 2016 and declare that amount on IRS form 8889 for my 2016 taxes?==========>> you must always file a Form 8889 in any year you or an employer contributes money to your HSA or you make withdrawals from the account. The deduction you calculate on Form 8889 is taken on the first page of your income tax return. Since this is an adjustment to your income, there is no requirement that you be eligible to itemize deductions to claim it You must file Form 8889



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