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djp279
Returning Member

I have a $1500 PPO plan that covers my entire family. My wife has an HSA that her employer and her contribute to...

 

I have a $1500 deductible PPO plan from my employer who offers an FSA for members of my plan. My entire family is covered under my plan.

 

My wife's (small) employer offers their employees an HSA that they are allowed to contribute to and that the company contributes $2000 to annually whether they participate in the company's HDHP or not... She was told by the bank that manages the accounts that she is eligible for contributing to the HSA because my plan is a $1500 plan despite the fact that MY employer says that I am not eligible for my own HSA. Her W2 has nothing in box 12 about any sort of contributions that she made to the HSA this year (she did contribute on top of the $2000 company contribution). I'm a bit flummoxed because it seems that she was given incorrect information based on the fact that I don't have an HDHP and cant contribute to an HSA myself, but by heathcare.gov and other definitions, it seems that only the $1500 deductible makes you eligible which means the information she was given WAS correct.

4 Replies
dmertz
Level 15

I have a $1500 PPO plan that covers my entire family. My wife has an HSA that her employer and her contribute to...

It appears that wife's employer makes contributions to an FSA, not to an HSA.  An FSA is not an HSA.

 

An employer is not permitted to make HSA contributions for anyone who is not covered by an HDHP plan.   Even if she was covered by such a plan, she is ineligible to have HSA contributions made on her behalf because she is also covered by your insurance plan which disqualifying coverage for the purpose of being eligible to make an HSA contribution.

 

If the contributions really were to an HSA, your wife needs to request a corrected W-2 to include code W in box 12 showing the total amount contributed through the employer and also obtain an explicit return of excess contribution from the HSA.

djp279
Returning Member

I have a $1500 PPO plan that covers my entire family. My wife has an HSA that her employer and her contribute to...

The 1099sa we received from the bank administering the account indicates it is an HSA account in box 5.

 

So despite the definition of am hdhp being a plan with deductible 1500 or more, the fact that mine is simply called PPO makes us ineligible? I have found that the only classification on heathcare.gov and other resources being the deductible and max oop amounts of which both apply to my plan 

dmertz
Level 15

I have a $1500 PPO plan that covers my entire family. My wife has an HSA that her employer and her contribute to...

For the plan to be an HDHP in 2020, the minimum deductible on a family plan is $2,800, so your family plan that has a $1,500 deductible is not an HDHP.  Since this plan covers your wife, it disqualifies your wife from having HSA contributions made on her behalf.

 

Also, the FSA is disqualifying coverage (unless it's a special purpose FSA, which appears not to the case here).

djp279
Returning Member

I have a $1500 PPO plan that covers my entire family. My wife has an HSA that her employer and her contribute to...

I misspoke. The family deductible is 3000, individual is 1500. 

 

Either way you answered my question and I will have to have her reach out to her HR department today.

 

Thank you. 

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