Can I Still Contribute to My FSA After Enrolling in Medicare? Can you have fsa with medicare? In this episode of “Ask the Hammer,” Jeffrey Levine from Buckingham addresses a question about Medicare and Flexible Spending Accounts (FSAs) for individuals working past the age of 65: Can I Still Contribute to My FSA After Enrolling in Medicare? The viewer, who plans to work until 70 and is covered under an employer’s health plan, inquires about the necessity of giving up their FSA after enrolling in Medicare Part A.

A flexible spending account (FSA) is a financial account that allows employees to set aside a portion of their pre-tax earnings to pay for eligible medical or dependent care expenses. These accounts are typically offered by employers as part of their employee benefits package.

There are two main types of FSAs:

Healthcare FSA: This type of FSA allows employees to use pre-tax dollars to pay for qualified medical expenses that are not covered by insurance, such as co-payments, deductibles, prescription medications, and certain medical supplies.

Dependent Care FSA: This type of FSA allows employees to use pre-tax dollars to pay for eligible dependent care expenses, such as childcare, preschool, and after-school care for dependents under the age of 13, or care for a disabled spouse or dependent.

One key feature of FSAs is that the funds must be used within the plan year or a grace period specified by the employer, typically 2.5 months after the end of the plan year. Any unused funds at the end of the plan year or grace period are forfeited, known as the “use it or lose it” rule. However, some employers offer a carryover provision or a grace period to allow employees to use remaining funds or to roll over a limited amount of funds into the next plan year.

Watch the full video for the answer to the question “Can I Still Contribute to My FSA After Enrolling in Medicare?” Be sure to check out more Ask The Hammer episodes at this link: https://www.finstream.tv/videos/ask-the-hammer/