If you're on Medicare, you can't put money away in a health savings account — the triple-tax advantaged account for medical costs. Trump's 2020 budget is trying to change that. What you should know.
President Donald Trump's proposed budget might make it easier for seniors to save for health-care costs on a tax-free basis.
Though it's uncertain whether this measure would be supported in Congress, this isn't the first time Trump has pitched the idea. Indeed, the 2019 budget had a similar provision.HSAs allow you to save money either on a pre-tax or tax-deductible basis, have it accumulate interest free of taxes and then make tax-free withdrawals to pay for qualified medical expenses.
Finally, you can roll over your HSA balance from one year to the next, meaning you can grow your account for an extended period of time. 1. Older people who are still working and use Medicare as a secondary payer. This assumes your workplace plan is a high-deductible plan with an HSA, and you turned 65 and enrolled in Medicare.
People in MSAs would be allowed to contribute to the tax-free accounts, subject to the annual HSA contribution limits, according to the U.S. Department of Health and Human Services. They would also have a one-time opportunity to rollover funds from their private HSAs to their MSAs.
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