@dmertz - that's what I get for going to dinner 😉
@Joe M Oh, when I said @ plus BillM223, I meant for you to take the plus out and concatenate the @ and BillM223 together (I would write it myself, but then I would be notifying myself 😉 ).
Let me lay this out in a table, because it seems to me a little bit easier to understand. I am avoiding talking about a shared excess, because - as dmertz knows - each HSA has its own excess, depending on how much of that $592 from January we allocate to each HSA.
dmertz, "$8,100 / 12 +11 * $4,550 /12 = $4,846" this is your computation of the spouse's HSA contribution limit. But this formula should not use 8,100, because that is allocating the taxpayer's 55+ bonus (one month of it) to the spouse's HSA. Doesn't the taxpayer's 55+ bonus belong exclusively to the taxpayer's HSA which can't be shared with the spouse? Shouldn't the spouse's limit be 4,763 in this case?
You
January Family 592 (this is 7,100 times 1/12)
Medicare – Feb to Dec – 0 No limit allowed
55+ - 83 (this is $1,000 times 1/12)
Total – $675
Contribution – $1296
your Excess = $621
Your spouse
January Family – 0 (remember that you and your spouse share that $592, and we gave it all to you)
Self – Feb to Dec – 3,254 (3,550 times 11/12)
55+ - 917 ($1,000 times 11/12)
Total – 4,171
Contribution – 4550
Excess = 379
So, as I see it, you can remove $621 in excess and your spouse can remove $379.
If you want to leave more money in your spouse's HSA, then you can assign part of the one month of Family coverage to your spouse rather than you.
Your spouse needs $379 in order to have the HSA limit match the actual contribution. So we remove that $379 from your $592 for January to get $213.
This would give you a limit of $296 (the one month of $1,000 times 1/12 plus the $213 of Family coverage that you are keeping), and it would give your spouse a limit of $4,550, which is the original $4,171 plus the $379 from January.
In this case, your spouse would not have an excess, while you would have an excess of $1,000 which you should withdraw before April 15th, if you can.
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