HSA with spouse PPO

[KiwiUrologist]

I am sorry if this has been discussed before. I am on a HDHP that covers myself and my wife (no other dependents) through my employer. My wife also has a PPO for herself through her employer without a FSA. My understanding is that I would be eligible for a HSA and could fund it up to the family limit of $7300 for this year. Is that correct? Initially I though I could only contribute up to the single limit, but after reading https://americanfidelity.com/blog/re...stakes-spouse/, it made it sound like since I have a family plan, I can contribute the family amount.

Thanks for your help.

[Savedfpdoc]

Go to your employers benefit website, if your wife’s in your plan then it should allow you to contribute the family limit. This is usually done when signing up for benefits in November. Atleast that’s when I set up my contributions, I can also adjust them throughout the year up until oct-nov.

not sure how your wife could’ve signed up for another primary insurance though?..

[tylerjw12]

If your wife has coverage on a PPO with copays for services instead of deductible then you cannot contribute the family limit.

Your plan may let you do this on the website, but the HSA is a relationship between you and the IRS. And the IRS won't approve you contributing the family max.

If your wife has a PPO why is she also on your plan?

[spiritrider]

If your wife has coverage on a PPO with copays for services instead of deductible then you cannot contribute the family limit.

Your plan may let you do this on the website, but the HSA is a relationship between you and the IRS. And the IRS won't approve you contributing the family max.

This is incorrect.

Having HDHP family coverage makes the husband eligible for the HSA maximum family contribution. The wife's PPO coverage only makes her ineligible to make HSA contributions.

If your wife has a PPO why is she also on your plan?

Depending on the cost to add the wife to HDHP coverage, it can be beneficial.

However, at a minimum coordination of benefits would be required. Not to mention, many plans now have a significant "fine" for electing coverage of a spouse who has their own coverage.

[KiwiUrologist]

Thank you everyone. My wife is on my plan as she is likely changing jobs/my coverage includes fertility coverage that isn't available elsewhere. Fortunately, there is no fine for adding my spouse. Although at my last job, they actually only would add a "fine" if you elected coverage of your spouse and your spouse declined primary insurance with their employer (i.e. no fine for secondary insurance).