HSA limit validations

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simas
Posts: 288
Joined: Wed Apr 04, 2007 5:50 pm

HSA limit validations

Post by simas » Sun May 27, 2018 10:18 am

Could you please confirm I am looking at this right?

Set up - my wife previously covered herself, myself, and our kids. Have not contributed anything to HSA so far due to missing it last fall during enrollment period (can contribute directly to HSA provider and still account for it, just not pre-FICA taxes).

I started new job and am eligible for insurance starting July 1st. Financially it makes sense for me to cover myself and kids and for my wife to continue on her own plan (due to providers and how premiums work out).

How do the limits work in such scenarios?
- one member of the married couple covering herself (in this case) in the high deductible plan with HSA
- another member covering himself and kids in separate high deductible plan

Is this correct
- she is eligible to contribute up to the limit for individual $3450 in 2018
- I am eligible to contribute to same $3450 (regardless of whether I cover kids or not) ? or is it family limit $6900 ?


Thank you

clydewolf
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Joined: Tue Jul 21, 2015 12:51 pm

Re: HSA limit validations

Post by clydewolf » Sun May 27, 2018 11:25 am

Is this correct
"- she is eligible to contribute up to the limit for individual $3450 in 2018?"
This is correct whether she covers the children or not.

- I am eligible to contribute to same $3450 (regardless of whether I cover kids or not) ? or is it family limit $6900 ?
You can contribute $3450 whether you cover the children or not.

The maximum for a contribution for a family in 2018 is $6900, plus each HSA owner age 55 and older can contribute an additional $1,000.

For more information see IRS Pub 969,Health Savings Accounts and Other Tax Favored Health Plans: https://www.irs.gov/pub/irs-pdf/p969.pdf

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jhfenton
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Location: Ohio

Re: HSA limit validations

Post by jhfenton » Sun May 27, 2018 11:44 am

The way I read your facts, your wife currently has family HDHP coverage, but that starting July 1 and for the rest of the year you will have family HDHP coverage (self + kids), and your wife will have self HDHP coverage.

Under those facts, you each effectively have family HDHP coverage the entire year, so the two of you can contribute any combination of $6,900 to either of your HSAs. For HSAs, when one spouse has family coverage, the other spouse is also deemed to have family coverage.

My wife and I are in the exact same boat, except that we made our change in February. We went from me having family HDHP coverage for all of us, to my wife having self + kids and me having self. We are still putting most of the money ($5,900) into my HSA because it is our large, fully-invested HSA, and we don't want to have to pay fees to invest two separate HSAs. All that is going into my wife's HSA is the $1,000 per year that her employer puts into it for her.

simas
Posts: 288
Joined: Wed Apr 04, 2007 5:50 pm

Re: HSA limit validations

Post by simas » Sun May 27, 2018 12:07 pm

Thank you both.
on facts
" your wife currently has family HDHP coverage, but that starting July 1 and for the rest of the year you will have family HDHP coverage (self + kids), and your wife will have self HDHP coverage."

Yes, this is exactly the scenario. I have no coverage as of now and for the first 6 months of the year and we get full coverage as dependent on DW plan. The rules of her plan is that spouse may be covered if they do not have an employee coverage option (unemployed, self employed, etc).
as of July 1st, I must leave her plan (as I have health insurance options elsewhere) and can cover myself, all of us, or myself and kids.


Based on how I read responses, 6900 is still the total limit for the year and could be in either plan (or both). Is this proper?

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FiveK
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Re: HSA limit validations

Post by FiveK » Sun May 27, 2018 12:17 pm

simas wrote:
Sun May 27, 2018 12:07 pm
Based on how I read responses, 6900 is still the total limit for the year and could be in either plan (or both). Is this proper?
Yes. There is no situation (other than the $1000/person age-based adder) in which a couple may contribute more than $6900 total in 2018. That $6900 may be contributed to the individual HSAs in any ratio the couple decides.

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