Fund two HSA accounts

[User2698470]

My wife and I have a hybrid system when it comes to managing our finances, i.e. a joint account for fixed and fixed-ish expenses and also individual accounts for personal expenses. We make about the same annual income, so it’s easy to keep it 50-50. We work for the same employer, so we have the exact same benefits.

We have had separate HDHP for the longest time, so each one of us can get a separate HSA that we fund directly from our paychecks. We never met our deductible as we were healthy, so we were not incurring into extra out-of-pocket expenses by having separate HDHP. However, our daughter has a minor condition that requires appointment with specialists as well as extra medical exams and stuff, so we could benefit from a family plan to reduce our overall deductible and out-of-pocket maximum.

The “problem” is that if one of us enrolls as the HDHP owner, my understanding is that person is the only one who can fund that HSA account with the full $8300. So I have a couple of questions:

1. Can a HDHP owner fund two HSA accounts but stay within the maximum family limit? i.e. can I fund my HSA as well as my wife’s HSA with $4150 each?
2. If I can’t fund two account directly, can I transfer funds from one HSA to another without paying taxes or exceeding limits? i.e. transfer $4150 from my HSA account to my wife’s HSA account
3. If I contribute the full $8300 from my paycheck, how can my wife “pay me back” for her pre-tax $4150 portion? What tax rate should we apply to the $4150 so her take-home-pay remains the same as if she would have contributed those $4150 from pre-tax money?

Thank you in advance.   

[Bsch4477]

There is a special contribution limit for married individuals, which provides that if either spouse has family HDHP coverage, then both spouses are treated as having only that family coverage. This means that if both spouses are HSA-eligible and either has family HDHP coverage, the spouses’ combined contribution limit is the annual maximum limit for individuals with family HDHP coverage.

[Opus 17]

You have some misunderstandings.  An HSA is owned by one and only one person.   See below for your specific questions.

It seems from your question that you are both enrolled in a qualifying HDHP.  You don't say if it is a family HFHP or an individual HDHP.  Possibly one of you has a single plan and the other has a family plan that includes your child.   As long as one spouse is enrolled in a family HDHP, then both spouses are considered eligible to make HSA contributions up to the family plan limit, even if the other spouse is not actually named as the policyholder on a family HDHP.  There is an overall family maximum of $7750 for 2023, so one spouse could contribute $7750 and the other spouse nothing, or each spouse can contribute $3850, or one spouse can contribute $1000 and the other spouse $6750.  Any split you like as long as the overall total is not more than $7750.

(There is a special rule if you or your spouse is age 55 or older, but I will ignore that for now.)

Therefore, you and your spouse are both eligible to make HSA contributions.  However, HSA accounts are owned by one person.  You can make contributions to your account and your spouse can make contributions to your spouse's account (if they open an account).  HSA funds cannot be moved, transferred or shared between accounts.  

One option is to enroll in the employer sponsored HSA by payroll deduction.  Another option is to open an HSA at any bank that offers them, and make tax deductible contributions out of pocket.  Instead of getting a reduced paycheck, you would claim the deductible contributions on your income tax return.  However, note that if you contribute by payroll deduction, you save an extra 7.65% on taxes, because the payroll reduction reduces your state, federal, and social security and medicare tax, but making out of pocket contributions only reduces your state and federal income tax.  Also, the workplace plan might have a lower monthly maintenance fee, because the fees might be subsidized by the employer.

So, you have several options:

1. You can enroll in payroll deductions and use the employer sponsored HSA, and contribute $7750 for 2023.  Your spouse does not have an HSA.

2. You can enroll in payroll deductions and use the employer sponsored HSA, and contribute some convenient amount less than $7750, while your spouse also enrolls in the employer sponsored HSA and contributes some convenient amount less than $7750, so long as your total combined contributions are not more than $7750.

3. You can enroll in payroll deductions and use the employer sponsored HSA, and contribute some convenient amount less than $7750, while your spouse opens an HSA at a local bank, and makes out of pocket contributions, so long as your total combined contributions are not more than $7750.

Any person with an HSA can use the funds to pay for qualifying care expenses of themselves, their spouse, or their dependents.  

1. Can a HDHP owner fund two HSA accounts but stay within the maximum family limit? i.e. can I fund my HSA as well as my wife’s HSA with $4150 each?

You can own more than one account (such as at different banks, although it seems like more trouble than it's worth) but your overall limit is $7750 if you are enrolled in a family HDHP and $3850 if you are enrolled in a single HDHP.  (The limits of $4150 and $8300 are for 2024.)   You can't fund your wife's HSA but your wife can fund it.  (This may seem like a minor point but it can be important.)

2. If I can’t fund two account directly, can I transfer funds from one HSA to another without paying taxes or exceeding limits? i.e. transfer $4150 from my HSA account to my wife’s HSA account

No. An HSA owned by one person.  You can't roll over, transfer or move funds from your HSA to someone else's, even if they are your spouse.

3. If I contribute the full $8300 from my paycheck, how can my wife “pay me back” for her pre-tax $4150 portion? What tax rate should we apply to the $4150 so her take-home-pay remains the same as if she would have contributed those $4150 from pre-tax money?

This is not a tax question.  You have chosen to manage your finances in a peculiar way, so whatever works for you.  Making HSA contributions at work will reduce your taxes by 7.65% for social security and medicare, by some percentage for federal income tax (12%, 22% or higher depending on your income) and by some amount of state income tax (3-13%, depending on your state and your income).