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pkulkarni42
Level 1

HSA contributions on family HDHP not to primary plan beneficiary

Through 2019, I used to have family coverage HDHP through my employer and made the annual max contributions to the HSA each year. 

 

For 2020, we switched to an HDHP for the family through my wife's employer.

 

For 2020 HSA contributions -  can I contribute the family max contribution amount for 2020 into my HSA account? Or do I have to establish a separate HSA account in my wife's name (the HDHP primary person being my wife for 2020) ? 

 

Prefer to keep it simple and not create one more account that I will have to manage, if permitted.

Thank you 

1 Best answer

Accepted Solutions
dmertz
Level 15

HSA contributions on family HDHP not to primary plan beneficiary

Correct, it does not matter who is primary on the HDHP.  What matters is who is covered.

 

HSA contributions do not depend in any way on wages or compensation.  The limitation is based on that annual limit prorated for the number of months of eligibility (presumably it will be the entire year in this case).

 

You'll report the amount contributed to an individual's HSA on that individual's Form 8889.  The HSA custodian(s) will report contributions on Forms 5498-SA.  These provide the IRS with the necessary information to determine how the family limit was split.

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3 Replies
dmertz
Level 15

HSA contributions on family HDHP not to primary plan beneficiary

Since both you and your wife are eligible individuals, you can allocate the family contribution limit between you and your wife any way you choose.  Any part that you choose to allocate to you can be contributed to your existing HSA.  However, if you or your wife is age 55 or over, any the catch-up contribution for that individual must be made to that individual's HSA.

pkulkarni42
Level 1

HSA contributions on family HDHP not to primary plan beneficiary

Thank you @dmertz.

 

To confirm my understanding, it does not matter who is the primary on the HDHP -  eligible individuals under that HDHP can contribute to an HSA as long as the total contribution for the family attached to that HDHP does not exceed the annual limit.

 

Couple of follow up questions -

Are there other limitations for this (like in IRAs contributions cannot exceed earned income etc.)

Will I need additional paperwork if I allocate to multiple HSAs?

 

Again, thank you for the help.

dmertz
Level 15

HSA contributions on family HDHP not to primary plan beneficiary

Correct, it does not matter who is primary on the HDHP.  What matters is who is covered.

 

HSA contributions do not depend in any way on wages or compensation.  The limitation is based on that annual limit prorated for the number of months of eligibility (presumably it will be the entire year in this case).

 

You'll report the amount contributed to an individual's HSA on that individual's Form 8889.  The HSA custodian(s) will report contributions on Forms 5498-SA.  These provide the IRS with the necessary information to determine how the family limit was split.

View solution in original post

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