@jpr123 wrote:
I have a similar question. My adult child will not be a tax dependent for 2021but was covered under my HDHP all year. I am age 51 and contribute after tax dollars to an HSA because work does not have one. So, I want to confirm the following:
I am eligible to contribute the family amount of $7200 for 2021and deduct it from my income on form 1040?
Also, my daughter can open her own HSA and contribute up to $7200?
My husband has a self only medical plan and his company offers an HRA. This does not effect my HSA contribution amount. Also, he is not eligible to contribute anything to an HSA since I contribute the full $7200 but we could have split that amount between us?
Thanks in advance!
Under your specific facts:
We first have to look at the HRA. Most HRAs count as disqualifying medical coverage for an HSA. This is because you can use HRA funds when you are still under your deductible. And most HRAs allow the employee to pay for costs for themselves, their spouse and their dependents, including children under age 27.
That means that, in general, both you and your child are disqualified from contributing to an HSA, because your spouse's HRA is considered disqualifying "other health coverage."
There are two possible ways around this.
1. Your spouse's employer plan specifically says the HRA can only be used for self expenses and can't be used for spouse or children. This would have to be in the plan contract and would be a very unusual provision. I suspect the HRA can be used for your and your child's expenses.
2. The HRA is an "HSA-qualified HRA." That would mean that your spouse was not eligible to request HRA funds until he had covered the minimum HDHP deductible, which was $2800 for a family HDHP for 2021. If he could use the HRA to pay your or your child's deductible costs, then you are not eligible to contribute to an HSA.
If we assume that you are HSA eligible and that your spouse's HRA is HSA-qualified, then your contribution limit is $7200 and your child's contribution limit is a separate $7200. If your spouse's medical plan is HSA eligible (it's a qualifying HDHP and the HRA is HSA eligible) then your spouse can also contribute to an HSA their own name, and your combined limit is also $7200--you can split your combined limit any way you choose and your combined limit is separate from your child's limit.
But check that HRA, I suspect it dooms you. Sorry.
