Still where we were a few weeks ago. Medical situation in family; did not touch taxes since we last spoke.
I did speak to our insurer, and found that we had a family insurance policy covering the two of us, until 9/30/21. It was HSA eligible. I funded an HSA in MY name. After 9/30/21, if have verified with the insurer that she had her individual policy in place. This policy is also HSA eligible.
The questions:
1. How much can Julia contribute to her HSA for her eligibility Oct-Dec 21 (after I was no longer on the policy, and she went forward with her own. I assume 1/4 of the annual max, correct? what about the catch up contribution, since she is 63, is that also prorated?
2. Complication: Acting on incorrect advice, back in early 2021, I contributed to my HSA what I would have been allowed to put in if I had had 12 months of eligibility. I have not yet directed the custodian of the HSA to refund the overage.
- I think you told me that the overpayment would get a 6% penalty if I don't withdraw it by tax day in April. It occurs to me that HSA money is similar to Roth IRA money, and if I can afford to let it compound there for years, it will be very useful later...so paying a 6% fee to leave it in the HSA would be a smart move. Am I looking at this correctly?
-If I do leave my excess contribution in the HSA, does that have any bearing on my wife's ability to start her own HSA as of 10/1/21?
Thanks,
Mike
