HSA Contribution Question - Spouse on Different Insurance

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
ddurrett896
Posts: 1712
Joined: Wed Nov 05, 2014 2:23 pm

HSA Contribution Question - Spouse on Different Insurance

Post by ddurrett896 »

I have a question on the annual HSA limits below:

Individual max: $3,600
Family max: $7,200

I carry my health insurance thru my employer and quality for the HSA.
My wife carries health insurance for her and our children thru her employer and doesn’t qualify for HSA (low deductible plan)

Am I able to contribute the max of $7,200? Thank you!
Last edited by ddurrett896 on Wed May 12, 2021 10:16 am, edited 2 times in total.
fabdog
Posts: 2543
Joined: Wed Jan 16, 2013 12:59 pm
Location: Williamsburg VA

Re: HSA Contribution Question - Spouse on Different Insurance

Post by fabdog »

No, not unless your plan, that covers only you, is somehow listed as a family plan.

But based on what you described you are limited to the individual max of $3600 (and $1k catch up if over 55)

Mike
DMoogle
Posts: 549
Joined: Sat Oct 31, 2020 10:24 pm

Re: HSA Contribution Question - Spouse on Different Insurance

Post by DMoogle »

$3,600 max for you. However, it's worth noting that you CAN withdraw from it to pay for HER medical expenses, assuming you aren't using it just as a retirement vehicle.
Topic Author
ddurrett896
Posts: 1712
Joined: Wed Nov 05, 2014 2:23 pm

Re: HSA Contribution Question - Spouse on Different Insurance

Post by ddurrett896 »

I understand the spending piece covering the entire family. Sent the same question to my HR and they said I was able to contribute the max of $7,200 in your HSA account.

If my HR allows it, is there any way I can be penalized? Thanks!
User avatar
Nate79
Posts: 9372
Joined: Thu Aug 11, 2016 6:24 pm
Location: Delaware

Re: HSA Contribution Question - Spouse on Different Insurance

Post by Nate79 »

ddurrett896 wrote: Wed May 12, 2021 6:47 am I understand the spending piece covering the entire family. Sent the same question to my HR and they said I was able to contribute the max of $7,200 in your HSA account.

If my HR allows it, is there any way I can be penalized? Thanks!
What HR told you is meaningless in this discussion unless there is missing information. When the IRS audits you and assesses penalties what is your HR going to do?

There are other important questions. Does your wife have a healthcare FSA? If so then you are ineligible for HSA contributions. If you are on an individual HSA eligible plan (no other family members have HSA eligible plan) your limit is $3600.
bberris
Posts: 2420
Joined: Sun Feb 20, 2011 8:44 am

Re: HSA Contribution Question - Spouse on Different Insurance

Post by bberris »

Yes even if HR allows you to break the law the IRS will not. You can look up the penalties in the IRS publications.
hachiko
Posts: 941
Joined: Fri Mar 17, 2017 1:56 pm

Re: HSA Contribution Question - Spouse on Different Insurance

Post by hachiko »

Are you covered under your spouse's coverage? If yes, you cannot make an HSA contribution at all. If not, it depends whether your coverage is family or self only. If family, you can contribute up to 7,200. If self, you can contribute up to 3,600.
Made money. Lost money. Learned to stop counting.
User avatar
RickBoglehead
Posts: 7877
Joined: Wed Feb 14, 2018 8:10 am
Location: In a house

Re: HSA Contribution Question - Spouse on Different Insurance

Post by RickBoglehead »

hachiko wrote: Wed May 12, 2021 10:10 am Are you covered under your spouse's coverage? If yes, you cannot make an HSA contribution at all. If not, it depends whether your coverage is family or self only. If family, you can contribute up to 7,200. If self, you can contribute up to 3,600.
OP pretty clearly specified that his wife has coverage for herself and the kids, and he has coverage for himself.
Avid user of forums on variety of interests-financial, home brewing, F-150, EV, home repair, etc. Enjoy learning & passing on knowledge. It's PRINCIPAL, not PRINCIPLE. I ADVISE you to seek ADVICE.
hachiko
Posts: 941
Joined: Fri Mar 17, 2017 1:56 pm

Re: HSA Contribution Question - Spouse on Different Insurance

Post by hachiko »

RickBoglehead wrote: Wed May 12, 2021 10:11 am
hachiko wrote: Wed May 12, 2021 10:10 am Are you covered under your spouse's coverage? If yes, you cannot make an HSA contribution at all. If not, it depends whether your coverage is family or self only. If family, you can contribute up to 7,200. If self, you can contribute up to 3,600.
OP pretty clearly specified that his wife has coverage for herself and the kids, and he has coverage for himself.
OP never said his coverage was self only. It is possible for each spouse to have a family plan. Also, I intended my response to also be helpful to others who have similar questions.
Made money. Lost money. Learned to stop counting.
Topic Author
ddurrett896
Posts: 1712
Joined: Wed Nov 05, 2014 2:23 pm

Re: HSA Contribution Question - Spouse on Different Insurance

Post by ddurrett896 »

hachiko wrote: Wed May 12, 2021 10:15 am OP never said his coverage was self only. It is possible for each spouse to have a family plan. Also, I intended my response to also be helpful to others who have similar questions.
My coverage thru my employer just covers me (High deductible, HSA available)
My wife/kids coverage is thru her employer (Low deductible, no HSA available)
RubyTuesday
Posts: 2241
Joined: Fri Oct 19, 2012 11:24 am

Re: HSA Contribution Question - Spouse on Different Insurance

Post by RubyTuesday »

Switch to family plan with employer, cover your kids, and contribute $7200 to HSA.

Once your kid is an adult they too can contribute the family max (double dip)
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
terran
Posts: 3046
Joined: Sat Jan 10, 2015 9:50 pm

Re: HSA Contribution Question - Spouse on Different Insurance

Post by terran »

Make sure you wife doesn't open an FSA that can be used for you because that would count as coverage that would stop you from being able to contribute to your HSA.
Topic Author
ddurrett896
Posts: 1712
Joined: Wed Nov 05, 2014 2:23 pm

Re: HSA Contribution Question - Spouse on Different Insurance

Post by ddurrett896 »

terran wrote: Wed May 12, 2021 11:35 am Make sure you wife doesn't open an FSA that can be used for you because that would count as coverage that would stop you from being able to contribute to your HSA.
Thanks! No FSA since it's use it or lose it and we rarely have medical emergencies..knock on wood!
Post Reply