I am attempting to submit my wife and my taxes as a joint claim. I'm running into trouble with our HSA contribution. The HSA contribution from each of our plans is loaded from our W-2s in section 12. My contribution of $2,450 is below the individual contribution amount of $3,500. (I have a standard high deductible plan with no other insurance for just myself). My wife claims our son on her insurance allowing her to claim at the "family" contribution level. She contributed $6,600 which is under the $7,000 limit. (She is also on a standard high deductible plan claiming with herself and our son being covered.) Could you please help me understand why we are in excess when both contributions are within the threshold?
Your maximum overall family limit is still $7000. Since your spouse is covered by a family plan, then you can make contributions as if you are also covered under a family plan. Which means that either you or your spouse could contribute up to $7000, but there is still a $7000 overall family maximum.
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In other words, for 2019, the sum of your contribution to your HSA and your wife's contributions to her HSA is not permitted to exceed $7,000, meaning that you have a combined excess of $2,050. By the due date of your tax return you'll need to obtain a return of excess contribution of this amount from your HSA, your spouse's HSA or a combination of the two, otherwise you will be subject to a 6% excess accumulation penalty for each year that the excess remains in the account(s) to which you attribute the excess.