I applied for Social security on 1/15/24 and my last contribution to my HSA was by my employer on 7/14/23 in the amount of $1200. I took the 6 months backdate literally. My total HSA contribution for the 2023 year (from January to July was $2400 which included the $1200 contribution from my employer on 7/14/23). I am not sure if I have to give back that $1200 to my employer or since I did not contribute more than the maximum contribution amount ( $8750 for family with catch-up contributions) for the year I would be ok. I applied 1 month before my 67th birthday. D.O.B. 2/27/57. I went to my local social security office, since I already received checks for Jan and Feb, to see if I could give back the January check and she told me all I had to do was sign a form declining Medicare coverage for which i did. Now I am more confused than ever. Do you have an information for me on this situation.
You mentioned near the end of the video that you can opt out of backdating if you would have to pay a part A premium. What - like most - you don’t have to pay a part A premium? Can you still opt out of the backdating? (Yes, We have an HSA.) Excellent information - thanks!
If someone doesn't have the necessary 40 quarters paid into Medicare, and neither does their spouse, then Part A has a premium of around $500/mo in 2024. For those rare cases, the person can request the backdating NOT happen, so they don't have to pay $500/mo for 6 months in the past. Everyone else who has the quarters, you cannot stop the backdating from happening.
A breath of fresh air amongst so much misinformation on this topic - Thank you! I spoke (chatted) with someone at Medicare today about the backdating period and they were not sure if could submit claims from that period? I retired last week and had a hospital stay/surgery in February of this year, so now this surgery is within the 6 month backdating period. Can I submit claims from a stay during this period?
I'm glad you found this content valuable. And yes, the Part A backdating enables you to have hospital claims re-filed with the medical provider. Contact their billing department to inform them that you technically had Part A at that time, and they will re-process it. There's no guarantee that it will save you money, but it's possible.
Andy, thanks so much for this video. Am I correct to say that the prorated amount for the year is more important than when funds are deposited? I ask my employer to stop my HSA at end of October 2023, so I can apply for Medicare in April 2024, but payroll didn’t act on my request till November causing a overfunding of about $352. So, if I withdraw the $352 from my HSA account before April 15, 2024 (tax filing date), I can still submit my request for Medicare in April 2024. Am I correct?
You are correct. It's not really about when in the tax year (or up to the tax deadline) when the fund are deposited...it's the amount that's deposited for the tax year. If you went over $352, that's not a big deal. I wouldn't necessarily go through the hassle of reversing it, but you certainly can try.
Thanks for the great video! For the example in your video, what does Joe need to do for his extra HSA contributions in previous year if he requests for Medicare in January of current year ?
In that scenario, there's not much you can do once the year has ended and the contributions were made. Reversing them through the HSA bank or via payroll can be a nightmare. Just don't put anymore in the account. The tax impact would be minimal if you go over for 6 months.
@@andystamas : Thanks for your response! Would you please explain "The tax impact would be minimal if you go over for 6 months" which I do not quite understand ?
This is the first time I’ve heard that the backdating starts when the application is submitted, not the Part A/B date…is this a for sure point? No offense meant.
Yes. See the "Signing up for Premium-free Part A later" section on this Medicare.gov link: www.medicare.gov/basics/get-started-with-medicare/sign-up/when-does-medicare-coverage-start#:~:text=You%20can%20sign%20up%20for,the%20month%20you%20turned%2065.
Hi Sir, i am already 65 last March. I didn’t not enroll or apply my medicare. Is it true that got a penalty ? What is the best health insurance for Medicare? Thank you for your response.
Hi there. Thanks for your question. As long as you have the 40 quarters paid into Medicare (so about 10yrs of work), then there is never a penalty for enrolling in Part A late. Part B is a different story. You can only delay Part B without penalty if you are currently covered on a group health plan through your employer or your spouse's employer...and that coverage is based on active/current employment (so not Cobra). As far as what is the best health insurance...that's a question based solely on your specific situation, budget, health, insurance coverage style, etc. If you live in OH, IN, KY, IL, TN, GA, NC, SC, or FL...we can help you with that. If you're outside of those states, we can connect you with a trusted Medicare insurance broker who is licensed in your state.
I am working pass 65 and not enroll on Medicare part A and delay Medicare part B aling until a I retire without penalty because of my HSA! I have been working for a large company for 31 years with 1,700 employees and I plan to retire at 70 by the end of 2025 which I may not make any distributions to my HSA account for entire year of 2025
I applied for Social security on 1/15/24 and my last contribution to my HSA was by my employer on 7/14/23 in the amount of $1200. I took the 6 months backdate literally. My total HSA contribution for the 2023 year (from January to July was $2400 which included the $1200 contribution from my employer on 7/14/23). I am not sure if I have to give back that $1200 to my employer or since I did not contribute more than the maximum contribution amount ( $8750 for family with catch-up contributions) for the year I would be ok. I applied 1 month before my 67th birthday. D.O.B. 2/27/57. I went to my local social security office, since I already received checks for Jan and Feb, to see if I could give back the January check and she told me all I had to do was sign a form declining Medicare coverage for which i did. Now I am more confused than ever. Do you have an information for me on this situation.
You mentioned near the end of the video that you can opt out of backdating if you would have to pay a part A premium. What - like most - you don’t have to pay a part A premium? Can you still opt out of the backdating? (Yes, We have an HSA.)
Excellent information - thanks!
If someone doesn't have the necessary 40 quarters paid into Medicare, and neither does their spouse, then Part A has a premium of around $500/mo in 2024. For those rare cases, the person can request the backdating NOT happen, so they don't have to pay $500/mo for 6 months in the past.
Everyone else who has the quarters, you cannot stop the backdating from happening.
A breath of fresh air amongst so much misinformation on this topic - Thank you! I spoke (chatted) with someone at Medicare today about the backdating period and they were not sure if could submit claims from that period? I retired last week and had a hospital stay/surgery in February of this year, so now this surgery is within the 6 month backdating period. Can I submit claims from a stay during this period?
I'm glad you found this content valuable. And yes, the Part A backdating enables you to have hospital claims re-filed with the medical provider. Contact their billing department to inform them that you technically had Part A at that time, and they will re-process it. There's no guarantee that it will save you money, but it's possible.
Andy, thanks so much for this video.
Am I correct to say that the prorated amount for the year is more important than when funds are deposited?
I ask my employer to stop my HSA at end of October 2023, so I can apply for Medicare in April 2024, but payroll didn’t act on my request till November causing a overfunding of about $352. So, if I withdraw the $352 from my HSA account before April 15, 2024 (tax filing date), I can still submit my request for Medicare in April 2024. Am I correct?
You are correct. It's not really about when in the tax year (or up to the tax deadline) when the fund are deposited...it's the amount that's deposited for the tax year. If you went over $352, that's not a big deal. I wouldn't necessarily go through the hassle of reversing it, but you certainly can try.
Thanks for the great video! For the example in your video, what does Joe need to do for his extra HSA contributions in previous year if he requests for Medicare in January of current year ?
In that scenario, there's not much you can do once the year has ended and the contributions were made. Reversing them through the HSA bank or via payroll can be a nightmare. Just don't put anymore in the account. The tax impact would be minimal if you go over for 6 months.
@@andystamas : Thanks for your response! Would you please explain "The tax impact would be minimal if you go over for 6 months" which I do not quite understand ?
@@jplin3933 If you over-contribute, then those contributions aren't supposed to be deductible.
Very good explanation, thanks a ton!!
Great!
This is the first time I’ve heard that the backdating starts when the application is submitted, not the Part A/B date…is this a for sure point? No offense meant.
Yes.
See the "Signing up for Premium-free Part A later" section on this Medicare.gov link: www.medicare.gov/basics/get-started-with-medicare/sign-up/when-does-medicare-coverage-start#:~:text=You%20can%20sign%20up%20for,the%20month%20you%20turned%2065.
@@MedicareMindset man, you’re on point. Thanks
Hi Sir, i am already 65 last March. I didn’t not enroll or apply my medicare. Is it true that got a penalty ? What is the best health insurance for Medicare? Thank you for your response.
Hi there. Thanks for your question. As long as you have the 40 quarters paid into Medicare (so about 10yrs of work), then there is never a penalty for enrolling in Part A late.
Part B is a different story. You can only delay Part B without penalty if you are currently covered on a group health plan through your employer or your spouse's employer...and that coverage is based on active/current employment (so not Cobra).
As far as what is the best health insurance...that's a question based solely on your specific situation, budget, health, insurance coverage style, etc. If you live in OH, IN, KY, IL, TN, GA, NC, SC, or FL...we can help you with that. If you're outside of those states, we can connect you with a trusted Medicare insurance broker who is licensed in your state.
@@andystamas thank you so much for information. I appreciate it.
I am working pass 65 and not enroll on Medicare part A and delay Medicare part B aling until a I retire without penalty because of my HSA!
I have been working for a large company for 31 years with 1,700 employees and I plan to retire at 70 by the end of 2025 which I may not make any distributions to my HSA account for entire year of 2025