HSA Contribution when Spouse & Kids have a HDHP via COBRA

[TaxWolf]

Through the end of this month (tomorrow), I am enrolled in my former employer's group health plan which covers myself, my wife, and our two kids. We have the ability for all of us continue with COBRA, or we can just have my wife and kids go on COBRA and have myself be uncovered. My question is, if only my wife and kids are covered under the HDHP (via COBRA), can we still make an HSA contribution up to the family limit? I ask because I already maxed out my contribution for 2025 ($8,550) to our only HSA which is in my name.

[DavidD66 · Accepted solution]

If you are not covered under the HDHP, you cannot make the maximum contribution to your HSA.   If your coverage ends at the end of February, you are only eligible for 2/12 of the maximum family contribution.  Your wife on the other hand, would be eligible for the maximum contribution to a Family HSA (less any amount you contributed to an HSA) if she and your children are covered all year by an HDHP.  If you choose to be covered under the HDHP, you will have to withdraw 10/12 of the maximum HSA contribution for a family plan.  You wife can then open an HSA and contribute the same amount to her HSA.