@Trathalmador wrote:
So I need to redo the HSA contributions, divide the max contribution by 2 and enter that amount for both of us? I had been told since the contribution was in January & medicare was September that I would not have to take $ out since it was greater than 6 months. For this year we created a new separate HSA for the wife to avoid this problem. It would have been better to create an account for each in the beginning. Good advice for others!
For medicare, we start with your effective enrollment date. If you enroll from 3 months before you 65th birthday to 6 months after your 65th birthday, your enrollment is effective on the first day of the month you turn 65. If you enroll more than 6 months after your 65th birthday, your enrollment is retroactive by 6 months.
It is the enrollment date that sets your maximum eligible contribution, but exactly when you make the contribution doesn't matter. If your enrollment date is Sept 1, you can make up to $5834 in contributions only, but those contributions could be made any time in 2023, even after your enrollment date. As long as you don't go over the total.
HSA accounts are owned by individuals. So if John contributed $8750 to John's account and John is only eligible to contribute $5834, then John needs to remove $2916 from John's account or pay a penalty.
Then, we next need to determine how much Mary can contribute to Mary's account. If Mary is age 55 or older and covered by a qualifying family plan, then Mary's limit will be $3583 or $3584, depending on how the program rounds the cents.
It is possible, but not required, for John to withdraw more than $2916 so that Mary can contribute more than $3583. You could make it exactly 50/50. But there is no need to. If Mary already contributed more than $8750, then something needs to come out. But if she has contributed less than that amount, she can contribute more up to that amount.
