Question

October retirement with family HSA and family high deductible health insurance

Forum|Forum|4 years ago
April 3, 2022
1 reply
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For many years we have had an HSA, and made contributions each year. This year we contributed $7000. We also carry health insurance (family plan) which is a high deductible plan. In 2021 I had to switch to medicare in October of 2021. The Family plan dropped me - but continued in my name for all remaining family members (dependents and spouse). The insurer mandated that the plan continue in my name even though I was not covered. My spouse (under age 65) and I co mingle funds. All contributions and insurance and everything else is made jointly, even though the plans and accounts for some reason can only be in one name. In TurboTax when we get to the HSA section, there seems to be no way to code this to show we both had the HSA, and we had both the HDP and the HSA for the year - and we are eligible (she is now) to contribute to the HSA. We have received 3 1095As from the Health insurance marketplace - all in my name. One for the first 9 months of the year (Joint family insurance), One for the family plan for three months for spouse and dependents - all in my name, and the last one for the plan I now how under medicare (Part C I think it is called). Where I am stuck big time is I do not want to "lie". If I say my wife had her own HSA - that would imply 2 different accounts - yet because of these questions - which imply none of this is joint - I do not know what to do. Do I need to tell TTax we both have HSA accounts, split our 2021 contributions between us as if everything was done separately to get the program to document this to properly and fairly calculate the taxes? Thank you!

D

dmertz

Employee

HSA accounts are individual accounts, not joint accounts; contributions made to your HSA are your contributions, not your wife's contributions.

I'll assume that you and your wife are both over age 55. Because you were eligible for only the first 9 months of the year, you are permitted a maximum contribution of $7,200 * 9 / 12 + $1,000 * 9 / 12 = $6,150 to your HSA. Because your wife and other members of the family continued to be covered by the family HDHP plan and your spouse is over age 55, your wife can contribute to her HSA the remaining 3 months worth of the $7,200 family limit plus your spouse's entire catch-up = $7,200 * 3 / 12 + $1,000 = $2,800. (If your wife is under age 55, she is not eligible to make the $1,000.) Of course your wife will have to open an HSA to make her contribution.