Your answer, I think, covers my situation, but let me ask specifically:
I have questions about HSA's. My wife (64 yeears old) and I were jointly covered by one family account. I became eligible for Medicare in October 2021, burning 65 then. I had erroneously been advised to make a deposit on the basis of 12 months eligibility back in January 21, so I need to back out three month's worth, or pay the 6% surtax on that. My question is about my wife's eligibility.
Since the family HSA was ended at the end of September, she apparently can make an HSA contribution for an account of her own, for the last three months of 2021,since there was no eligibility for the family plan any more. I understand that the contribution must be made by tax filing day in April 2022. The question is the amount. TurboTax says an amount over 7000, which I think would reflect a whole year's eligibility. Is it right that she would get a whole year's worth, not just three month's worth, of eligibility? And being of age, does she get a full $1000 catch up contribution, or only a pro rata portion of it?
My understanding is that she should be entitled to deposit 900 + 1000 (3 MONTHS PRO RATA SHARE OF THE INDIVIDUAL 3600 ANNUAL ALLOWANCE, PLUS THE 1000 CATCH UP.
Is this correct, or does the catch up get pro-rated also?
If I do not back out my overpayment, and elect to pay the 6% additional tax on that, does that affect her eligibility?
Thanks Bill.
Mike
