Situation:
-Wife has free health insurance through her employer. We will obviously be keeping it. (It does not qualify as HDHP)
-My new employer's plan covers expensive, expected medical care that hers does not. I start July 1 and will select coverage for both of us for this reason.
-I've got the choice of 3 plans, including a HDHP, which all other things being equal is the best, which I talked about here. Employer contributes 600 to an HSA for single coverage
-I don't seem to be able to elect HDHP for myself and PPO for her. If we're both on HDHP employer contributes another $600 to my HSA
-My understanding is that somebody can't contribute to HSA if they have double coverage with a non-HDHP (my wife)
Question: if I elect the HDHP for both of us, do I need to refuse the additional $600 (if I can figure out how to do this with human resources)? Can I only contribute up to an HSA to the single limit, $3350? Can I keep the additional $600 but only contribute up to the single limit?
If she hits her out of pocket max (expected this year) and I incur minimal medical expenses (most likely scenario), HDHP is still the best option. If worst case scenario happens and we both hit OOP max, HDHP is more costly by a negligible amount that we can cover.
edit: I think I'm scenario 2 in this IRS explanation? Which makes me think I can contribute up to the family max (including employer contribution).
edit 2: from here: "Family HDHP coverage is an HDHP covering an eligible individual and at least one other individual (whether or not that individual is an eligible individual)" "If you have family HDHP coverage you can contribute up to $6,750"
"if you were not an eligible individual for the entire year or changed your coverage during the year, your contribution limit is the greater of:
By form 8889 my max would be $3325, but by option 2 it would be $6750, right? So if I'm paying for a family HDHP on Dec 1, 2016, my max contrib is: 6750 - 1200 employer contribution = $5550?
Using option 2 subjects you to the testing period, which means I have to be an eligible individual for 2017. It would seem I can switch to self-only HDHP for 2017 and still pass the testing period.
-Wife has free health insurance through her employer. We will obviously be keeping it. (It does not qualify as HDHP)
-My new employer's plan covers expensive, expected medical care that hers does not. I start July 1 and will select coverage for both of us for this reason.
-I've got the choice of 3 plans, including a HDHP, which all other things being equal is the best, which I talked about here. Employer contributes 600 to an HSA for single coverage
-I don't seem to be able to elect HDHP for myself and PPO for her. If we're both on HDHP employer contributes another $600 to my HSA
-My understanding is that somebody can't contribute to HSA if they have double coverage with a non-HDHP (my wife)
Question: if I elect the HDHP for both of us, do I need to refuse the additional $600 (if I can figure out how to do this with human resources)? Can I only contribute up to an HSA to the single limit, $3350? Can I keep the additional $600 but only contribute up to the single limit?
If she hits her out of pocket max (expected this year) and I incur minimal medical expenses (most likely scenario), HDHP is still the best option. If worst case scenario happens and we both hit OOP max, HDHP is more costly by a negligible amount that we can cover.
edit: I think I'm scenario 2 in this IRS explanation? Which makes me think I can contribute up to the family max (including employer contribution).
edit 2: from here: "Family HDHP coverage is an HDHP covering an eligible individual and at least one other individual (whether or not that individual is an eligible individual)" "If you have family HDHP coverage you can contribute up to $6,750"
"if you were not an eligible individual for the entire year or changed your coverage during the year, your contribution limit is the greater of:
- The limitation shown on the Line 3 Limitation Chart and Worksheetin the Instructions for Form 8889, Health Savings Accounts (HSAs), or
- The maximum annual HSA contribution based on your HDHP coverage (self-only or family) on the first day of the last month of your tax year."
By form 8889 my max would be $3325, but by option 2 it would be $6750, right? So if I'm paying for a family HDHP on Dec 1, 2016, my max contrib is: 6750 - 1200 employer contribution = $5550?
Using option 2 subjects you to the testing period, which means I have to be an eligible individual for 2017. It would seem I can switch to self-only HDHP for 2017 and still pass the testing period.
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