IRS Notice 2004-50 has been issued, correcting and revising Notice 2004-2 as follows:
The second sentence of A-2 is changed to read: An “eligible individual” means … (3) is not enrolled in Medicare … .”The last sentence in the first paragraph of A-12 is changed to read: “In addition to the maximum contribution amount, catch-up contributions, as described in [Notice 2004-2] A-14, may be made by or on behalf of individuals age 55 and older, who are not enrolled in Medicare.”
The first sentence of A-14 is changed to read: “For individuals (and their spouses covered under the HDHP) who have attained 55 and are also not enrolled in Medicare … .”
Basically, the main correction has to do with Q/A-14 of Notice 2004-2 which originally stated: “After an individual has attained age 65 (the Medicare eligibility age), contributions, including catch-up contributions, cannot be made to an individual’s HSA.” However, as corrected, the sentence now reads: “After an individual has attained age 65 and becomes enrolled in Medicare benefits, contributions, including catch-up contributions, cannot be made to an individual’s HSA.”
Also, PlanSponsor.com is reporting that the IRS has issued final versions of two model health savings account (HSA) forms–IRS Form 5305-B (“Health Savings Trust Account”) and IRS Form 5305-C (“Health Savings Custodial Account”). The forms can be utilized by HSA trustees and custodians, respectively, to allow individuals to establish HSAs.