BillM223
Expert Alumni

Deductions & credits

OK, we have to start all over again, because you two share the annual HSA contribution limit for a Family HDHP policy. 

 

The annual HSA contribution limit is calculated for each HSA separately.

 

For your HSA, the limit starts out as $7,100 plus the $1,000 "bonus" for 55+. But, as I noted, the $7,100 is shared with your husband. So your $6,500 represents the $1,000 plus $5,500 of the Family coverage.

 

That leaves only $1,600 ($7,100-$5,500) to share with your husband. Your husband's $1,000 "bonus" gets prorated from $1,000 to $500 because of Medicare.

 

So his annual HSA contribution limit is $2,100 ($1,600 + $500). But since $2,600 was contributed to his HSA, his excess contribution is $500, just as TurboTax reported.

 

Doing the Family HDHP coverage when you are 55+ and one spouse goes on Medicare is a complicated calculation, and not one that I would expect most taxpayers to easily figure out.

 

I hope you can be content that the calculation is correct, and be glad that you won't have this situation again.

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