Question

Can my wife contribute to her own HSA account if she is laid off?

Forum|Forum|1 year ago
November 6, 2024
1 reply
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My wife has been laid off. So, she will be unemployed next year though she will still be receiving the severance pay. I will enroll her in the high deductible insurance plan offered from my employer next year. My question is whether she can make contributions to her own HSA account which was established previously when she was employed.

O

Opus 17

Employee

If your wife is covered by a qualified HDHP, she can make contributions. She does not have to be the "owner" of the policy.

Assuming you are both covered by a family HDHP, you share the $8550 family limit. You can each contribute up to that amount (including any employer contributions) and you can split the family limit any way you like, but your combined contributions can't exceed the overall family limit of $8550 (for 2025). Also note, if you can make contributions via payroll deduction, that will save more in taxes, because in addition to be excluded from state and federal income, your workplace contributions are excluded from social security and medicare tax. So employer contributions save 7.65% more in tax than after-tax deductible contributions.

If one or both of you is age 55 or older, that person has an additional $1000 catch up contribution limit. The catch-up contribution must be made to the person's own account only, it can't be split or put in the other person's account.

K

kim_hung_loAuthor

Thanks for the answer.

Next year, both my wife and are are covered in the high deductible health insurance plan (from my work). So, we can make contribution up to $8550 to my account or split it into two amounts (totaling to $8550) and put them separately into my own HSA account and her own HSA account. Am I understanding this correctly?

Now, it comes to the catch up contribution. Both of us are above 55. So, I can contribute up to $9550 in my HSA due to my $1000 catch up. But her catch up contribution cannot be put in my own account. Instead, the $1000 catch up for her will need to be put in her own HSA account. Am I correct about this?