HSA annual contribution limits are (single/family):
2023 $3,850/7,750
2024 $4,150/8,300
There is also additional $1,000 catchup for 55+.
https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits

@Mona, yes, HSA contributions are not allowed while on Medicare.
Employers may now require Medicare signup for eligible employees. Mine kicked me out of the group plan as soon as I became Medicare eligible (as a retiree).
One huge benefit of HSAs is years of buildup of funds and that won't happen with late signups.

If she is only going to work 2-3 more years, I wonder if it is worth her while to sign up for the HSA now and deal with unenrolling from Medicare Part A with the Social Security Administration. However, she is in a 32% tax bracket.

@yogibearbull, she is still employed (she figures at least two more years) and her employer does not require her to sign up for Medicare. She signed up for Medicare Part A when she turned 65 to get it out of the way and because it was free, not thinking that she may be interested in an HSA. Her employer seems to be cutting healthcare costs by increasing her contribution and changing to a Blue Cross plan with higher co-pays and deductibles.

@bee
Thanks for the link.
"Stopping Medicare to Reclaim HSA Eligibility
If you signed up for Medicare Part A and now want to decline it, you can do so by contacting the Social Security Administration. Assuming you have not begun receiving Social Security checks this will reestablish your eligibility for an HSA. If you have applied for or have begun receiving Social Security, you cannot opt out of Medicare Part A without paying the government back all the money you received from Social Security payments plus paying the government back for any money Medicare spent on your medical claims. This action will also stop future Social Security payments (until you reapply and start this cycle over again)."
She has not begun receiving Social Security checks, so she would need to contact the Social Security Administration to now "decline" Medicare Part A, in order to reestablish her eligibility for an HSA. Is there any downside to doing this?

@Mona, yes, HSA contributions are not allowed while on Medicare.
Employers may now require Medicare signup for eligible employees. Mine kicked me out of the group plan as soon as I became Medicare eligible (as a retiree).
One huge benefit of HSAs is years of buildup of funds and that won't happen with late signups.

@Mona,
This link seems to cover a lot of the questions regarding HSA and turning 65
hsa_and_medicare

I have a friend who turned 66 in May, her employer's health insurance plan is an HSA-eligible plan, and she is looking to contribute. However, when she turned 65, she signed up for Medicare Part A.
My understanding is that can't participate in Medicare Part A (or B) and contribute to an HSA at the same time. Is this correct? If so, would it make sense to unenroll (if possible) from Medicare Part A?

I have stated that HSA are the single best investment for folks to utilize. If they have to pick one, HSA is superior to IRA and Roth IRA.

Highly recommend Fidelity HSA platform as a choice.

Check out the M* HSA article that YBB referenced.
M* has published annual evaluations of HSA providers since 2017.
ISTR that the Fidelity HSA was always rated high as an investment vehicle.
FWIW...

Wanted to highlight that June MFO had an article by Mark
https://www.mutualfundobserver.com/2023/06/the-young-investors-secret-weapon-the-hsa/

Fidelity, I believe has HSA accounts. Many others too, but I think there are fees associated to these accounts. @bee used to talk about HSA's a lot. He would know more.

There is some info on H.S.A. (to avoid incorrect MFO hyperlink) at
https://ybbpersonalfinance.proboards.com/thread/258/hsa-health-savings-accounts
M* had a recent update, https://www.morningstar.com/specials/the-best-hsa-providers
2023 M* Update on Top HSAs
A brief explanation of HSAs is followed by rating tables and then by more detailed descriptions of a few top plans.
HSA - Spending
Fidelity, First American Bank, Health Equity, HSA Bank, Lively, etc.
HSA - Investing
Fidelity, Associated Bank, Health Equity, Lively, UMB, etc.
Many HSAs have brokerage windows
Fido HSA https://www.fidelity.com/go/hsa/investing-hsa-your-way
Schwab HSA/HSBA https://www.schwab.com/hsba

Serious question. Does anyone know if there is a brokerage etc where you can open/ transfer into a HSA where you could invest in mutual funds, stock, tbills etc? It seems to me that most/all HSAs you put your monies in and they put you into a savings account that pays deminimus interest? Or it's kind of an online only outfit like Lively where there is nowhere to walk into a place and speak to someone.
Pls advise if you have further insight
Tks
Baseball Fan

COVER STORY “It’s Time to Stop Crying About BONDs and Buy Them Instead”. 2023 may (hopefully) end the worst-ever 3-yr stretch for TREASURIES. Other investment-grade bonds have also suffered. But the RATES are peaking, and focus should be on what comes next (rather than crying over the spilled milk). Hedge-fund manager Bill ACKMAN has covered his Treasury shorts. Yields are much higher now, and much of the bond return is from their starting yields. Bond prices are related to DURATION and longer-term bonds have more kick (up/down). Taxable bonds are oversold and are more attractive than comparable munis. INFLATION-expectations are moderate around +2.5%. Investment-grade bonds may resume their traditional BALLAST role and 60-40 portfolios also look attractive. RISKS include higher persistent inflation, the FED losing control to BOND VIGILANTES, reduced global DEMAND for Treasuries and DOLLAR. The high short-term yields won’t last and it’s time to extend duration/maturity through intermediate-term bonds and/or bond ladders. Mentioned are funds representing a broad spectrum: VMFXX, PFIAX, AGG/BND, OSTIX, BASIX, BINC (new).
Long-Treasury etf TLT is having a lousy year again (3rd), but investors continue to pour money into it (#3 etf inflows YTD) in the hopes of a turnaround soon (2024?). The better performing HY JNK may do the opposite.
(At MFO, ETF incorrectly hyperlinks to something. So, using etf to avoid that. @Charles)
INCOME. Attractive consumer-staples include CLX, HLN, KVUE (JNJ spinoff), LW, PG; etf XLP.
FUNDS. Ouch! If you own bond index funds, then you are suffering from a 3rd bad year. Indexing is difficult for bonds. Many issues are illiquid and may not trade often. Active bond funds may be desirable in specialized FI areas.
Core – Indexed AGG, BND
Core – Active VCORX
Multisector PONAX (these combine sovereigns, corporates, HYs, EMs)
HY – Indexed HYG
HY – Active BHYAX, RSIVX, VWEHX
Munis – Indexed MUB
Munis – Active HMOP, MDNLX, VWAHX
(by @LewisBraham at MFO)
FUNDS. BERKOWITZ’ LC value FAIRX is doing well YTD due to its 82% of assets in FL real estate developer St Joe/JOE (extreme concentration). Almost 33% of the $340 million AUM fund is held by Berkowitz’s family members and they don’t mind paying 1% ER. The AUM peaked after Berkowitz was named Manager of the Decade by M* in 2010, but there have been persistent outflows since then. Institutional holders may redeem the fund for JOE stock. Investor/personal returns (M* statistic on asset-weighted returns) have been poor. (by @LewisBraham at MFO)
Byron WIEN passed away at 90 (1933-2023). He was well-known for his annual lists of 10 Surprises, 20 Life Lessons, Summer Lunches in Hamptons, etc. His philosophy on predictions (and he made many) was that they were meant to be thought-provoking contemporaneously and it didn’t matter whether they turned out to be right or wrong (and he didn’t keep score himself, but others did). A world traveler, his mobility recently was limited by a hip injury, and he relied on Zoom. A nerdy Chicago kid, he was lucky to get into Harvard. His long career was at Morgan Stanley/MS (retired in 2001), Pequot, Blackstone/BX (2009- ). He was quoted often in the media and in Barron’s which did a Cover on him in 2016. He noted that sleep is more critical than diet or exercise. A multimillionaire, he lived modestly – he flew commercial; brought leftover restaurant food home; didn’t move from NYC to FL “because” he wasn’t a billionaire to avoid taxes. His philanthropy was for people who needed help and support rather than for arts and museums. He did endow 2 professorships at Harvard and also funded several scholarships there. He was married twice but didn’t have children and had many godchildren.
RETIREMENT. According to a study by MetLife/MET, 75% of employees could benefit from high-deductible health plans (that is poor naming/framing) and HSAs. But only 45% of employers offer HSAs and only 29% of employees use HSAs. The employee benefits are from lower plan premiums and because the HSA funds can be used tax-free for qualified medical expenses and in retirement (so, it’s like a super-401k/403b). HSAs are also portable. But HSA contribution must stop when Medicare begins; however, the HSA-funds can still be used for medical expenses. (Incorrect MFO hyperlink for HSA)
https://ybbpersonalfinance.proboards.com/board/12/market-insights

Another type of IRA “conversion”:
If money is tight and you are over 59 1/2, one might consider an IRA withdrawal that funds your HSA. This could be done each year until age 65. Taxes due on the IRA withdrawal (in the amount equal to the tax deductible HSA contribution) cancel each other out.
IRA “withdrawal” to HSA “contribution” Strategy:

If money is tight and you’re 59½ or older, you could take a regular withdrawal from your IRA and use it to contribute to your HSA. The tax bite from the traditional IRA withdrawal and the tax deduction from the HSA contribution should nearly cancel each other out. And most importantly, you can do this more than once—in fact, every year if you want.

investopedia - transfer-ira-money-to-an-hsa

SECURE Act 2.0 Section 307 (see p 2237(!) here) amends IRC Section 408(d)(8) by adding a new subsection (F).
This new tax code provides for a QCD to any "split interest entity" (408(d)(8)(F)(ii)) including (I) a CRAT, (II) a CRUT, or (III) a charitable gift annuity. I haven't yet searched for mix-and-match restrictions, i.e. whether one can contribute to more than one gift annuity or, say a CRAT and a gift annuity. Fidelity seems to think that one cannot mix and match, though it is silent on making QCDs to two entities of the same type.
https://www.fidelitycharitable.org/articles/secure-act-2-0-retirement-provisions.html
Fidelity's page on charitable gift annuities says that they may have mins as low as $5K but depending on the annuity the min could be much higher. OTOH, it also says that CRTs typically have mins of $250K which would exclude most of them from this new section of the tax code.
https://www.fidelitycharitable.org/guidance/philanthropy/charitable-gift-annuity.html
A QCD donation to a split interest entity can only be done in one tax year, similar to the restriction about using an IRA to fund an HSA. You're allowed to make multiple contributions in the same tax year. Keep in mind that if you want the QCD to apply to an RMD, then it must be made before other distributions (standard QCD/RMD rule).
I can understand the loophole about treating the full amount as a QCD even though one receives a taxable benefit later (what Yogi labeled as (i)). Any other treatment would make this whole thing too complicated - that you would get only a partial QCD exemption from taxes. And that would defeat the objective of using a QCD for RMD purposes.
QCD decision flowchart (showing where CGA, CRAT, CRUT fit in, and a paragraph on each).

Oh to answer the mutual fund question, I did a quick run through MFO for health care funds with best risk related returns, Martin numbers etc in last five years
Several to consider. I think active management is probably a better bet than an index
BHCFX is retail version of BHCHX
SHSAX SWHFX And PHSTX all come in close to top.
Interesting the only "Great Owl" is Schwab's SWHFX

Thanks@David_Snowball. I contribute monthly to BRUFX into my HSA account. I use bill pay. Very simple.
My condolences to the Bruce family.

The other question, which is more personal and Bobpa does not have to answer is does he need an emergency fund? While I worked hard to wean my kids off my checkbook, and they happily followed thru when they had jobs, in a true financial emergency involving several thousands of dollars, we would gladly help.
It is important at young ages to adapt responsible budgeting, a savings plan and to be able to swing emergency car repairs for example, but a new roof might be beyond that funds capacity.
I would agree with paying off student loan.
Having received similar equity inheritances, I would also suggest keeping a little bit of at least one position as a sentimental reminder of someone else’s largesse.
I have a few shares of Exxon that “were” originally my grandfathers in 1920s. They are only electrons but they are still a reminder of his life and career.

Great idea about keeping the reminders. I have my Grandfather's tax forms from the beginning of the income tax. Much heavier than electrons, but interesting to contemplate from time to time.
He could keep a 1000 bucks each, pay off the student loan, and still have some left over for the emergency fund/IRA/HSA account.