Hello Team,
Me and my family are enrolled in HDHP since Jan 2024, through my employer. And my employer contributes 2500/year in HSA.
My spouse got a new job in Feb 2024, but her health and other employment benefits were applicable 90 days after starting a new job. So her health benefits started since June 2024.
I think we submitted documents to add me and my family to her insurance in last week of May or Jun 2024. Her health plan is a HMO with low deductibles ($600) making me ineligible for HSA.
I am trying to get myself un-enrolled from her plan, but her health plan administrator says spouse can be removed only after a divorce. So I am stuck.
So, assuming my spouse's coverage (where I am added) makes me ineligible for HSA for 6/7 months in year 2024.
- What can be done to funds contributed since July 2024 in HSA account by my employer? I read a few articles asking to withdraw the excess contribution and pay taxes on that before plan year / April 2024. But my employer's benefits administrator is unaware and keeps repeating hsa benefits to me over email. So, I would like steps to follow to get this done may be bore 31st Dec 2024. Or can I do it till April 2025 (by tax deadline date?)
- If I withdraw excess contribution, do I need to pay 20% penalty on withdrawal?
- I will be paying around 215/month for HDHP family coverage from next year and my employer adds nearly the same amount in HSA. So from tax perspective should I continue this and withdraw excess contribution next year again? Is it allowed to do so ?
- Or I should just stop my employer's health coverage and save premium amount. I mean, we are kind of healthy and just do yearly preventive checkup. And have HMO care is at approx. 30 mins distance. So, we are ok with a HMO plan as well. But I have been in US for 2.5 years and not aware of everything.
- Spouse’s plan - https://www.seiulocal1.com/Content/Docs/Health%20&%20Welfare%20Plan%20Docs%20&%20Notices/2024_Schedu...
Pls let me know if my understanding is correct, and what I can do for next year.
Just to answer, this came up during next year's enrollment which asks about HSA related questionnaire.
