What is your health savings account, once you meet the Medicare Conditions

My wife would be 652,011 in June and have health insurance, but I do not put 65-2012 years. Currently, we have a high-deductible health insurance policy, usually contribute the maximum amount of our annual health savings account. Because she was at the age of 65 years, how much can we contribute to our account in 2011? We can use HSA money for health insurance after her?

In 2011 the maximum HSA contribution $ 6,150 for a family plan (single coverage $ 3,050), plus $ 1,000 to catch up with everyone over the age of 55 years of contributions. But your situation is more complicated, since her 65th birthday in the middle of this year.

Once your wife signed up for health insurance, she can no longer contribute to HSA. So she would have prorated her contribution to her a few months before the HSA qualified health insurance high deductible policy registration Roy Ramthun, HSA Consulting Services, president. Medical enrollment is the first day you put the age of 65 months effective (if your birthday is the first day of the month, however, your registration began on the first day of the previous month). When

Assumed that she was asleep on your family policy, she is entitled to get health insurance in June, so she is home insurance ($ 2,562.50), plus her $ 1,000 catch- 5/12 contribution of $ 6,150 contribution up to 5/12 ($ 416.67). If you switch to self-only coverage for the rest of the year (because you are still 64), then you can contribute $ 3,050 plus 7/12 of single covering the full $ 1,000 to catch up contribu ash. See IRS instructions table 8889 table to help you calculate your contribution limit.

Although she later enrolled in Medicare, your wife does not contribute to an HSA, she can still use the money for those uninsured medical expenses tax-free – such as co-payments, deductibles, prescription drugs ( including over-the-counter medications with a prescription), vision and dental care and long-term care premiums based on age part (, $ 3,290 for the 61-year-old to 70 for example). She can also use the money from – pay for Medicare part B premiums tax-free account of her, D or Medicare benefits (but not medigap premiums). For a list of qualified medical expenses, see IRS Publication 502

For more information on Health Savings Accounts HSA See related know. See details about the tax rules IRS publication 969.