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HSA clarifications- both spouses have

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  • HSA clarifications- both spouses have

    My wife and I both have HDPD with HSA options through our respective jobs. Her plan would allow an 'employer contribution' of 1500/yr, mine does not have this. Both plan investment options are similar (and suck) and we have just been rolling out to Lively every quarter anyway.

    My 2 questions:

    1. For 2021, is the 7200 family max inclusive of any employer contribution or can the employer contribution be in addition (e.g. more than 7200 total for the year)? I think it is the former but wanted to clarify

    2. Is it correct that we can distribute the 7200 / year between our two accounts however we would like (e.g. we both have accounts open and she contributes 7000 to hers and I contribute 200 to mine etc)?

  • #2
    Originally posted by Timparsons952 View Post
    My wife and I both have HDPD with HSA options through our respective jobs. Her plan would allow an 'employer contribution' of 1500/yr, mine does not have this. Both plan investment options are similar (and suck) and we have just been rolling out to Lively every quarter anyway.

    My 2 questions:

    1. For 2021, is the 7200 family max inclusive of any employer contribution or can the employer contribution be in addition (e.g. more than 7200 total for the year)? I think it is the former but wanted to clarify

    2. Is it correct that we can distribute the 7200 / year between our two accounts however we would like (e.g. we both have accounts open and she contributes 7000 to hers and I contribute 200 to mine etc)?
    1. The employer contributions as well as the employee ones count towards the annual contribution limit.

    2. If you two are both electing single-coverage healthcare plans, then each of you can only contribute half the family maximum contribution limit. Couldn't do $7000 into one person's HSA, then $200 in the other.

    If you and you wife have separate HSAs through your respective employers, have no children and are simply electing single healthcare coverage on your employer plans, then combined, you two can only contribute the annual maximum of $7200.

    Interestingly enough, according to a WCI podcast I once listened too, if both a husband and wife are old enough to qualify to make "catch-up" contributions, then it's possible for each spouse to have a single-coverage healthcare plans from their respective employers. This allows each spouse to contribute towards the individual annual maximum PLUS their catch-up contribution amount. Pretty nice, huh?

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    • #3
      Catch-up contributions do not require separate self-only HDHPs.

      Any HSA eligible individual >= age 55 can make catch-up contributions to their own HSA account. Any HDHP plan or plans qualify.

      Comment


      • #4
        Originally posted by spiritrider View Post
        Catch-up contributions do not require separate self-only HDHPs.

        Any HSA eligible individual >= age 55 can make catch-up contributions to their own HSA account. Any HDHP plan or plans qualify.
        So if a wife is on a husband's plan where he has an HSA and she has her own HSA, they combined can contribute the annual family max plus twice their catch-up contribution amounts?

        Comment


        • #5
          No, there is a family contribution max and each HSA eligible individual >= age 55 have a single catch-up contribution limit. What I was referring to, is that with a single family plan. Regardless of how they allocate the family contribution max, each spouse >= age 55 can make the full catch-up contribution, but it must be to their own HSA account. I was simply pointing out that an HSA eligible individual does not have to have their own HDHP to make catch-up contributions.

          Comment


          • #6
            Originally posted by spiritrider View Post
            No, there is a family contribution max and each HSA eligible individual >= age 55 have a single catch-up contribution limit. What I was referring to, is that with a single family plan. Regardless of how they allocate the family contribution max, each spouse >= age 55 can make the full catch-up contribution, but it must be to their own HSA account. I was simply pointing out that an HSA eligible individual does not have to have their own HDHP to make catch-up contributions.
            Gotcha. Thanks for the clarification!

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