My HSA eligible medical ended 9/30/21. I have questions about my HSA contribution, and if my wife can fund an HSA for Oct-Dec.

[MHODISH]

We had a high deductible medical insurance plan that covered both my wife and me, until 9/30/21. I turned 65 on 10/6/56, so left our medical policy that had the two of us on it, in favor of medicare.

From 10/1/21, my wife had her own high deductible medical insurance plan. Can she fund her own HSA for last three months of the year, so 25% of the normal allowable individual maximum, so $3600 x .25 = $900?   She is 53 years old, can she also pay a catch up contribution, and if so, is that also prorated to 25% of the full year value of $1000,  so $250?

Complication: On receiving incorrect advice early in 2021, I contributed what I would have been able to had I been eligible for 12 months. I have not yet asked the HSA custodian to refund this erroneous deposit.  Am I correct, that the overpayment gets an additional tax of 6%? If so, might it be smart to just pay that and leave the money in the HSA? It gives many of the benefits of a Roth IRA, and in that light, it is a low cost for that benefit.  

If I choose that strategy, does my over-contribution have an adverse effect on my wife's ability to start her own HSA and fund it for the last few months of 2021?

TIA, Mike

[Mike9241]

there is no such thing as a joint HSA

so for 9 months you could contribute $600/month ($7200/12) to either your HSA or your spouse's HSA or split any way you wanted. in addition, being over 55 you could make a pro rata catch up of $750,   ($1000 X 9/12)

your spouse is not 55 no catch up is allowed

for the 3 months she had self-only HDHP coverage she could make a $300/month contribution to her HSA

you over contributed to your HSA. if you don't draw it out by 4/15/2022 it's subject to a 6% penalty.  in addition, you can't draw it out in future years to pay other than qualified medical expenses. a non-qualified distribution is subject to regular income taxes and a 20% penalty. leaving the excess in subjects it to another 6% penalty in 2023, and every year thereafter until used 

[MHODISH]

I may have neglected to include in the sub - question about Julia funding her own HSA: She is 63. How is her catch up contribution calculated, is it prorated  x  .25, for 3 months of the year?

[Cynthiad66]

Yes pro-rate the catchup contribution by the number of months you had the plan.

For those 55 years and older, the 2021 HSA catch up contribution limit remains the same at $1,000. With a catch-up contribution, people who have self-only coverage can contribute up to $4,600 in 2021; those who have family coverage can contribute a maximum of $8,200.

@MHODISH