@Serge wrote:
Thanks to both of you for an excellent comprehensive response! I had to read this 4 times!
While we re both covered under her HDCP, I am the one who is the "primary owner for the HSA from my prior job and always contributed for my wife in there.
Thus by her having the HDCP and me having the HSA account, the max in our case with December Medicare would be 1000+3550+3,254 = $7804 max which is outline in here.
I did not realize that we could contribute a proprated amount of a additional $1000 for her if she opens her own account but my HSAa being a "family". I am not sure that would be allowed.
PS: I also realize the service rep from my HSA company gave me a completely wrong number.
I will need to ask @dmertz to double check me, but if you are the owner of the HSA, then you need to adjust your thinking in two ways.
First, as long as your insurance coverage is still "family", then your limit for 2020 is still $8100. It is not reduced by your wife going on Medicare, if the coverage otherwise remains the same. If your wife's employer canceled her coverage and made it a single HDHP covering you only, or the employer transitioned her to a different single medical coverage that works with Medicare and placed you in a single HDHP, then your contribution limit is reduced as you calculated.
Second, it is absolutely allowed for your wife to contribute her catch-up contribution to an HSA in her own name. If either spouse is the primary covered person for a family HDHP, then both spouses are eligible to contribute as long as they don't also have other disqualifying coverage. However, her contribution limit for 2020 will be $916 as she is ineligible starting December 1, and it is too late to make a retroactive contribution for 2019. Whether you want to open that account for just $916 is up to you.
