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I will be 65 in the middle of August and Medicare will take over at the beginning of August. I would like to contribute the max to my HSA this last year. I think I can contribute $2625 this year - ($4500/12) * 7.

Is this correct ?


Yes, assuming you have self-only coverage. If you had family coverage, your eligible contribution would be $4667 ($8000/12 * 7).

Does the contribution need to be made before August 1 ?

No, you have until April 15, 2020 to make your 2019 contribution. That said, keep in mind that Medicare Part B, C (Medicare Advantage) and D premiums, as well as Medicare co-pays and deductibles, can be paid from your HSA, either directly (if you would otherwise pay for the expense out of your accounts), or by taking a distribution to reimburse yourself for premiums taken out of your SS check. So, if you are going to be taking that money out of your HSA in the latter part of 2019, it would probably make sense to make the contribution prior to when you start making withdrawals. However, if you don't need the tax-free income in 2019, then you can just tally up those Medicare expenses (along with the rest of any non-reimbursed eligible medical expenses incurred after you established your HSA) so that you can take tax-free withdrawals at a later date.

AJ
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