Can I contribute to HSA this year?

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jeff622859
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Can I contribute to HSA this year?

Post by jeff622859 » Sun Sep 09, 2018 1:06 pm

My wife and I have seperate health insurance through our respective employers. I just recently switched to a HDHP and now want to contribute to an HSA. However, my wife has a FSA that she contributes to monthly. I know that you can’t contribute to both a HSA and FSA but since we are on seperate health insurances can I contribute to “my HSA” even if she contributes to “her FSA”?

Thanks for the help.

Spirit Rider
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Re: Can I contribute to HSA this year?

Post by Spirit Rider » Sun Sep 09, 2018 2:31 pm

Unfortunately no.

The fact you are on separate health insurance plans is irrelevant. Your wife's FSA can reimburse your medical expenses before your deductible is met and is considered "other insurance" making you ineligible for an HSA for all of 2018. This is true regardless if you are ever reimbursed or the FSA account is drained to $0.

jeff622859
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Re: Can I contribute to HSA this year?

Post by jeff622859 » Mon Sep 10, 2018 4:26 pm

Thanks!

Can my employer make their contribution in 2018 to the HSA and I just wait to make my own personal contributions until 2019?

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tfb
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Re: Can I contribute to HSA this year?

Post by tfb » Mon Sep 10, 2018 8:11 pm

jeff622859 wrote:
Mon Sep 10, 2018 4:26 pm
Can my employer make their contribution in 2018 to the HSA?
Yes, but you will have to withdraw it after Dec. 31 as excess contributions. You are still better off even though the money becomes taxable.
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Spirit Rider
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Re: Can I contribute to HSA this year?

Post by Spirit Rider » Mon Sep 10, 2018 8:29 pm

tfb wrote:
Mon Sep 10, 2018 8:11 pm
jeff622859 wrote:
Mon Sep 10, 2018 4:26 pm
Can my employer make their contribution in 2018 to the HSA?
Yes, but you will have to withdraw it after Dec. 31 as excess contributions. You are still better off even though the money becomes taxable.
This is also the one case where the employer can withdraw the contributions because you were never HSA eligible.

You have a moral/ethical, but not legal responsibility to notify your employer. Some will still continue the contributions and just include them as taxable compensation.

ColoradoRob
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Re: Can I contribute to HSA this year?

Post by ColoradoRob » Tue Sep 11, 2018 6:37 pm

I'm no expert, but maybe evaluating which is a better option for your married situation is the real question: keep her FSA with 2018 contribution limit of $2650? Or drop the FSA and pursue the HSA which has a 2018 contribution limit of $6900. Given that your employer is / could be making contributions, and that an HSA is NOT use/lose like the FSA, and is portable, maybe the HSA is a better option long term. But you would have to do the math for what works for your situation.

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grabiner
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Re: Can I contribute to HSA this year?

Post by grabiner » Wed Sep 12, 2018 7:41 pm

ColoradoRob wrote:
Tue Sep 11, 2018 6:37 pm
I'm no expert, but maybe evaluating which is a better option for your married situation is the real question: keep her FSA with 2018 contribution limit of $2650? Or drop the FSA and pursue the HSA which has a 2018 contribution limit of $6900.
You cannot normally terminate an FSA during the year. Your spouse switching health plans is not a qualifying event.

For next year, you can check whether there is a Limited Expense FSA available. Such a plan covers only dental and vision expenses, and thus can be used with an HSA. However, your wife's employer is unlikely to offer one since it doesn't offer an HDHP to go with it; your employer might.

The HSA contribution limit would be the individual limit of $3450, not $6900, unless your plan covers someone other than you, such as your children.
Wiki David Grabiner

jeff622859
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Re: Can I contribute to HSA this year?

Post by jeff622859 » Wed Sep 12, 2018 8:05 pm

Thanks.

I’m just going to chalk-up 2018 as a lost year and then terminate my wife’s FSA and start contributing to my HSA in 2019.

Ostentatious
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Re: Can I contribute to HSA this year?

Post by Ostentatious » Wed Sep 12, 2018 8:09 pm

You may also try to convince your wife's employer to cancel her FSA or change it to a limited purpose FSA. Some have had success with that.

amitb00
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Re: Can I contribute to HSA this year?

Post by amitb00 » Wed Sep 12, 2018 8:26 pm

I had signed up for FSA when my spouse had HSA. Then I read at Bogkehead that it is not allowed. My company HR did not know this. I shared links and they recategorized FSA to Limited FSA.

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