I have an MSA account for my family HDHP plan. Line 2 on the MSA limitation worksheet limits my annual deductible to 8350, as if self-only. How can I enter 16000?

[BillM223]

First, let me confirm that you meant to type MSA and not HSA. MSAs are older plans and not so common any more (but are still valid).

Second, I have entered a test in the CD/download product (as opposed to the Online product), and on form 8853, the 16,000 is indeed on line 2.

But you said worksheet, which has me confused, because on the MSA Limits Worksheet, the contributions are on line 1. Line 2 is the annual deductible amount of your HDHP.

If by 16,000 you don't mean your contribution but you mean the limit of your Family HDHP policy (which should be 75% of the annual deductible of your HDHP policy), then come back and tell me that.

So let's reconfirm what we are talking about.

[antheminspections]

All good, I found the problem. I was unaware that the HDHP maximum high deductible limit was different for an HSA than it is for an MSA.  While our HDHP does have a maximum family deductible of 16000, the IRS caps this at 8350 for an MSA, while an HSA can have a maximum high deductible of the full 16000 in which to calculate maximum contributions from. This makes a huge difference in tax liability if one is contributing and using the maximum allowable contributions.

[BillM223]

However, the annual HSA contribution is not a function of the deductible amount of the HDHP policy. Rather, it is a "fixed" number like $8,300 for a Family HDHP policy and $4,150 for a Self-only HDHP policy without regard to the deductible levels.

"while an HSA can have a maximum high deductible of the full 16000 in which to calculate maximum contributions from" - this is not how HSAs work. I tell you this so that you won't think that HSAs are a better deal than they actually are.

[antheminspections]

Yes, aware that it cannot exceed 8300 for a family policy, plus $1000 if over 55.

The primary difference being not limited by the MSA 75% of a maximum HDHP deduction of 8350.

In calculating my taxes with each scenario, it is the difference between paying $1100, and paying $200.

[BillM223]

Good. Enjoy your MSA!