HEALTH SAVINGS ACCOUNT

[RichieSpry2]

I am 68. Retired and on Medicare Part A. My wife is 63. Retired. We are both on a BCBS HDHP. We want to open an HSA. Can we open the HSA for tax year 2024 prior to April 15 2025? What is the max we can contribute? 

[SabrinaD2]

Yes, your wife may be able open a Health Savings Account (HSA) for the 2024 tax year and make contributions until April 15, 2025. Here are some details:

• Since you are both covered under a Blue Cross Blue Shield (BCBS) High Deductible Health Plan (HDHP), the maximum contribution for family coverage in 2024 is $8,300. 
• However, because you are enrolled in Medicare Part A, you are not eligible to contribute to an HSA.  Beginning with the first month you are enrolled in Medicare, your contribution limit is zero.
• Your wife, being 63 and not enrolled in Medicare, can contribute the full $8,300 plus an additional $1,000 since she is 55+ before the end of 2024
  • If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. If each spouse has family coverage under a separate plan, the contribution limit for 2024 is $8,300. 

Important Considerations:

• Medicare Enrollment: Once you enroll in Medicare, you are no longer eligible to contribute to an HSA
• Ensure that any contributions made in 2025 for the 2024 tax year are clearly designated as such to avoid confusion

Explanatory Articles:

• Fidelity - HSA Contribution Limits 2024
• IRS Publication 969
• Intuit TurboTax Community

[Opus 17]

"We" can't open an HSA.  HSAs are individual accounts.  Your wife can open an HSA and contribute up to $9300 for 2024, assuming she was covered by a qualifying HDHP for all of 2024 and did not have any "other" medical coverage that disqualifies her from making contributions.  

You are disqualified from making any contributions to an account in your own name because, even though you are covered by an HDHP, you also have "other" coverage that is not an HDHP (Medicare).