Does TT calculate the HSA maximum correctly?

[mavospin]

My wife and I have individual HSAs. I am with my daughter in a family plan and contributed $5,340 total (self and Employer) for 2023. My wife contributed in a single plan $4,719. We both are over 55, in a HDHP and there is no carry over from prior year. TT says that my excess contribution is $309. How does it arrive at this number?

[Mike9241 · Accepted solution]

for a husband and wife, the max (if one has a family plan both are deemed to have a family plan)  is $7750 which can be split any way you want. in addition, because you are both over 55 and each maintains an HSA each can make a $1000 catch-up contribution to their own HSA thus the total for both of you for 2023 is a maximum of $9750

your contributions totaled $10059. $309 more than the max.

penalties of 6% apply to the lesser of the excess contribution or Fair market value of both HSAs on 12/31/2023

to avoid penalties the excess including earnings thereon needs to be withdrawn by the due date of the return including extensions. if you withdraw notify that this is a withdrawal of excess contributions

your other choice is to pay the 6% penalty for 2023 and then under fund the maximum for 2024 by the $309

[mavospin]

Thank you, I did not expect the $1,000 for over 55 year old persons to apply to each one even if they have a separate HSA. That is great news!