Tax laws regarding IRA’s, 401k’s, and HSA’s, all funded with before tax monies, should be changed to allow significant amounts ($250,000) to be rolled over, without penalty, or tax from an IRA or 401k to a HSA in order to make up the shortfalls created by employees losing their employer covered healthcare in retirement.
Note: When a person signs up for Medicare (age 65 or older) they are no longer permitted, under IRS rules, to contribute to a HSA. And, in fact, Part A Medicare becomes retroactive the shorter of 6 Month prior to their application or back to when the person turned 65 years old. People are falling into the “Trap” of contributing to their HSA until they retire, which is when their Medicare Part B becomes effective. They are typically unaware that Medicare Part A is made effective 6 Months retroactive which makes their HSA contributions 6 months prior to their Medicare application date illegal and subject to significant IRS penalties.