The Stop Penalizing Working Seniors Act would change federal tax law to allow people age 65 and older who are enrolled only in Medicare Part A (hospital insurance) to contribute to Health Savings Accounts (HSAs). Currently, people covered by any form of Medicare are generally prohibited from making HSA contributions. This bill would create an exception for seniors who have only Part A coverage, typically those who continue working and maintain private health insurance through their employer while delaying enrollment in Medicare Part B (medical insurance). The change would take effect for tax years beginning after December 31, 2024, enabling working seniors to save pre-tax dollars for healthcare expenses without losing their HSA eligibility. The bill carries no direct federal spending, as it only modifies tax treatment of existing savings accounts.
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