HSA Contribution/Medicare

Forum|Forum|6 years ago
January 27, 2020
2 replies
37 views

My husband and I both work for the same company, he full-time and me part-time. I am on his HDHP insurance as a dependent. We are both over 60 and he contributes the maximum amount to his HSA. In June of 2019, he went on Medicare while both of us stayed on the HDHP for the entire year. He contributed $3334 to his HSA ($7000+$1000/12x5) for 2019. I opened a HSA for 2019 but what is the maximum amount I can contribute? I come up with $2625 ($3500+$1000/12x7) but the Turbo Tax calculator shows more. Thank You

Best answer by dmertz

Since you were covered by a family HDHP the entire year, your maximum contribution is $1,000 + 7/12 * $7,000 = $5,083.33.

(More precisely, $1,000 + $7,000 - your husband's 5/12 * $7,000, but the result is the same.)

VictoriaD75

Level 12

Individuals are not allowed to make contributions to HSAs once they attain the age of 65 and qualify for Medicare coverage. Medicare doesn’t offer an HSA-qualified option. You can’t make contributions to your HSA for any months after you enroll in any Part of Medicare, even if you’re also covered on an HSA-qualified plan and meet all other HSA eligibility requirements. However, if you elect not to enroll in Medicare, you are still eligible to contribute to the HSA, as long as you are enrolled in a high deductible health plan.

However, if you are otherwise HSA-eligible, you can maintain an HSA. Individuals don’t have to be the medical plan subscriber to be HSA eligible. You or your spouse can then make tax-deductible contributions into their HSA, up to the family maximum if you remain covered on a family contract (even only if they are HSA-eligible). For some couples, this provision in the law allows them to continue to contribute to an HSA (and build tax-free balances for distribution in retirement) for several years after the older spouse enrolls in Medicare eligibility requirements.

In 2019, the family contribution limit was $7,000 with an additional $1,000 per qualifying spouse for taxpayers age 55-65. As your spouse is no longer HSA-eligible, your total 2019 contribution limit will equal $8,000, which is $7,000 plus an additional $1,000 for one qualifying spouse.

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sunnyboy2Author

Level 2

Thank You for your detailed message. Sorry but can you please confirm that my husband can make a maximum 2019 contribution of $3334 to his HSA and I can make a maximum 2019 of $8000 to mine?

dmertz

Level 15

I think you were typing while I was replying with the response to the question you actually asked. And yes, your husband's maximum contribution is $3,334.

Because your husband's catch-up is limited to 5/12 * $1,000, the total between the two of you is a bit less than the combined $9,000 you both would have been able to contribute if you were both eligible all year.