@bugmenot wrote:
Hi Mike - this is very helpful. I just want to confirm - this is for non-married (legally) and filing separately domestic partners correct? If that is the case, you can each contribute up to the max of the HSA family limit (because you're both covered by a family HDHP?
Also, if you were covered under a single plan the whole year but a family plan starting December 1 then you could contribute the max by December 31, 2022 correct?
I want to go back and raise some red flags. You may want to seek professional advice (someone you pay to guard your interests, not a random person on the internet.)
We need to separate contributions and expenses.
You can contribute to the HSA if you are enrolled in a qualifying HDHP insurance plan and have no other health coverage that would be considered disqualifying. If you are enrolled in a family HDHP, you can contribute up to $7300 for 2022. If you were under a single plan for 11 months and a family plan for one month, your normal limit would be $3953. If you use the last-month rule, you can contribute the full $7300, but only if you remain on a family HDHP for all of 2023. If you leave the family HDHP before 12/31/23, your 2022 contributions retroactively become excess and subject to a penalty.
Also, if your partner is not your tax dependent, your partner can contribute to a separate HSA in their own name if they are covered by a family plan (and have no other disqualifying health coverage), even if they are not the named insured. Because they are not your spouse, they have a separate $7300 limit, so you could potentially combine to contribute $14,600 for 2022 under the last month rule. However, if you get married in 2023, your limit collapses to a single shared family limit (which is $7750 for 2023). If your partner is your dependent, they can't contribute to a separate HSA.
Now we have to turn to spending.
You can only spend money from an HSA to cover expenses for yourself, your spouse and your dependents. If your partner is not your tax dependent, you can't withdraw from the HSA to cover their expenses. (Because same-sex couples can get married, the federal tax laws no longer extend spouse-type tax benefits to domestic partners.) Thats one reason your partner might want to set up their own HSA.
