HSA/ SS question

[DebbiM890977]

Hi all,

I won't tell you all of the incorrect info I have received over the past week. I'm hoping to verify that I now have the correct answers.

1. I will be 64 on March 2, 2019 If I apply for SS on that date, I will receive my age 64 SS benefits in approximately three months. Correct?

2. My husband took SS at full retirement age and still works full-time. When I apply will I receive my benefit amount or half of his benefit amount?

3. The BIG question. In January of this year (2019), my employer deposited $3500 into my HSA account. Since I will not be eligble for medicare until next year, am I still allowed to keept that money if I apply for SS next month?

Thanks for your help!

Debbi

[GailL1]

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@DebbiM890977 wrote:

Hi all,

I won't tell you all of the incorrect info I have received over the past week. I'm hoping to verify that I now have the correct answers.

1. I will be 64 on March 2, 2019 If I apply for SS on that date, I will receive my age 64 SS benefits in approximately three months. Correct?

2. My husband took SS at full retirement age and still works full-time. When I apply will I receive my benefit amount or half of his benefit amount?

3. The BIG question. In January of this year (2019), my employer deposited $3500 into my HSA account. Since I will not be eligble for medicare until next year, am I still allowed to keept that money if I apply for SS next month?

Thanks for your help!

Debbi

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1.  Yes, you will get a reduced benefit based on your age when you file - yes, (3) months is a good approximation for SSA to process your application and begin benefits.

If you register for an account on my Social Security.gov, you can follow along its progress.

2.  When you file for your benefit - you will be filing for all benefits for which you qualify - you will get the higher - your own benefit OR your spousal benefit (50% of his FRA benefit).  Either will be reduced because you are filing for early benefits.

You are affected by the Social Security Deemed Filing Rule rule since you were born on or after January 02, 1954  - simply put, this just means that when you file for benefits - either your own or your spousal - you are "deemed" to be filing for both - so if you pick your spousal benefit, your own benefits will NOT continue to grow.

Since your husband is still working and this will add to his benefit.  SS will adjust it based on his work contribution record, he will get a higher benefit based on his continued work.  This should also increase your spousal benefit whenever they adjust it for him. 

Social Security Benefits Planner - Getting Benefits While Working

3.  The HSA and Medicare conflict ONLY comes into play when you sign up for Medicare - that can be age 65 or later if a person has other credible coverage and can delay signing up for any part of Medicare.

If you are going to continue to work after you start receiving SS benefits and your employer offers this type of coverage for you - you will have to make your decision at 65 for either / or - watch it  carefully because since you will already be receiving SS benefits, Medicare may automatically enroll you and if you want to keep your HSA plan, you will have to disenroll in Medicare - ASAP.

If you want to go on Medicare - STOP your employer's contributions to your HSA - (6) months before you go on Medicare.  You will be able to utilize the funds that are still there for out of pocket medical expenses.

This is a pretty simple HSA and Medicare fact sheet written by a Benefits manager.

Benefits Stategies LLC - Medicare and HSAs

This is from (Center for Medicare and Medicaid Services) CMS:  Medicare-Deciding on your coverage: 

I have a High-Deductible Health Plan AND a Health Savings Account (HSA): 

Once you enroll in any part of Medicare, you won’t be able to contribute to your HSA. If you would like to continue making contributions to your HSA, you can delay both Part A and Part B until you (or your spouse) stop working or lose that employer coverage. You will NOT pay a penalty for delaying Medicare, as long as you enroll within 8 months of losing your coverage or stopping work (whichever happens first).You should talk with your employer benefits manager about whether it makes sense to delay Part A and Part B.

NOTE: If you qualify for premium-free Part A, your coverage will go back (retroactively) up to 6 months from when you sign up. So, you should stop making contributions to your HSA 6 months before you enroll in Part A and Part B (or apply for Social Security benefits, if you want to collect retirement benefits before you stop working).