Medicare & Tax Dependents

Medicare eligibility

An individual who is entitled to Medicare benefits is not eligible for HSA contributions. To be entitled to Medicare benefits, an individual generally must be both eligible and enrolled. Eligibility for Medicare benefits alone does not make an individual ineligible for HSA contributions.

IRS Notices 2004-50 and 2008-59 confirm that a Medicare-eligible individual who is not actually enrolled in Medicare Part A, Part B, Part D or any other Medicare benefit may contribute to an HSA until the month that he or she is enrolled in Medicare.

Tax dependents eligibility 

An individual who can be claimed as a tax dependent of another individual is not eligible for HSA contributions. In general, a taxpayer may claim an individual as his or her tax dependent if the individual is:

  • The taxpayer’s child and under age 19 at the end of the tax year;
  • The taxpayer’s child, a student and under age 24 at the end of the tax year; or
  • A member of the taxpayer’s household for whom the taxpayer provided over half of the support for the year and whose gross income does not exceed the personal exemption amount ($4,000 for 2015).

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