Medicare or HSA Plan
episode
DIY Money | Personal Finance, Budgeting, Debt, Savings, Investing
17 min
3 speakers
3 chapters
transcribed 1 month ago
Transcript
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Transcript generated automatically by AI and may contain errors.
What is the main topic discussed in this episode?
Hey, this is Allie, and thanks for listening to the show. Give us a five-star review where you listen and share this episode with someone who might need to hear it. Now, enjoy the show. Welcome back, ladies and gentlemen. You're listening to another edition of DIY Money. DIY Money. What's going on, Logan? What's going on with you? Oh, let's see. I'm six weeks away. We're cutting this on the 29th of July. I'm six weeks away from my race. I'm feeling good. Hey, you look cool, Bill.
You have a specific target. You don't want to speak that.
I have a very specific target, like a very, very, very specific target. Uh, but no reason to discuss it publicly, but it's aggressive and, uh, yeah. So just, I'm ready to get after staying healthy. That's the key. Um, I'm working with a, working with a coach that's been fantastic and I'm hitting my marks. I hit marks this morning that were, uh, aggressive on a track workout. I was like, I don't know if I'll be able to do this, but I did. That's awesome.
You're ready to go?
I'm ready to go. I'm ready to go, and I will report back to all for sure. What's going on with you? Let's roll right into it today. Let's not mess around. Let's go right into it. First of all, keep the questions coming because we need them. Send those questions to podcast at diymoney.org. That's podcast at diymoney.org, and we'll send you a $25 Amazon gift card if we use it on the show. We got a good one today from Destiny. Destiny, what do you got?
D!
Hi, DIY Money. This is Destiny from Maryland. Love the show. Thanks for all your help. My question is about the HSA triple tax benefit and the possibility of delaying Medicare enrollment for the purpose of this strategy. Now, from what I understand, around 65, when you're enrolled in Medicare, you can no longer contribute to an HSA. But would it ever make sense to delay Medicare enrollment to continue to contribute to an HSA if you're still working past 65 and are pretty healthy? premiums of an employer high deductible plan might be comparable or maybe even better than medicare's and you'd continue to benefit from the tax advantage now i'd imagine you would also need to delay collecting social security but i understand that there's maybe some benefits to that as well and that you could likely end up receiving more from social security long term if you can wait to collect it would love to hear your thoughts on this thanks so much
Okay, Destiny, this is a great question, and it actually was one we had to dialogue about offline to kind of formulate the right answer because it's not as black and white as you would expect. So first of all, a couple of nuanced things to understand. for those listening, and it sounds like you have a really good idea. And we'll also need to recap. I always think it's wise to recap when she threw out the triple tax benefit HSA. I love that. I still talk to people who listen to the podcast, and I'm like, do you do an HSA? They're like, I don't even know what that is. So we'll have to recap that. But a couple of odds and ends. Medicare in the United States is a program that is healthcare for those people
65 and older. Assuming, and this is the assumption, that you are not currently employed, still employed, so this is a biggie, employed and covered by a company plan, but the company has to be large. I don't know exactly what the number is. I think it's like... I don't know what the number is. Do you know what the number is? I don't either. Okay, you could look that up. But it has to be a large company plan. It can't be like a small business plan of 10 people. So if you are covered by a large company plan and you are 65... You can stay in that plan. You do not have to go on to Medicare. Therefore, at that age 65, until you decide to retire from that company, the answer is yes. You could continue to stay in a high-deductible plan.
You could continue to make your contributions to an HSA. You could continue to get the tax credit, and it would make a lot of sense. However, those number of people that are kind of in that camp are, quite honestly, few and far between.
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