Calculating HSA contribution limit

[okrandy]

My wife went on medicare in March of 2019.  I was not on medicare in 2019.  I and our two children were covered by an HDHP for the entire year.  My wife was covered for January/February.  We are married and file jointly.

I contributed the full family amount plus the $1,000 catchup to my HSA for a total of $8,000.  We contributed 2*1000/12 (prorated catchup) to my wife's HSA.

TTax says my wife could have contributed $1,334.  I don't understand the calculation.  Who is correct?

[Opus 17]

Ignoring Medicare, your spouse’s contribution limit is $8000, and your contribution limit is $8000, and your combined overall family contribution limit is $9000.  

Since your spouse enrolled in Medicare in March, her contribution limit would be $8000 divided by 12 months x 2 months= 1333.33.

I was unable to find anything in the instructions that requires you to adjust the overall $9000 family limit for Medicare. Since you contributed the full $8000, that suggests your wife could have contributed up to $1000.  However, I might have missed some thing. I’m going to ask a smarter expert.  @dmertz 

[dmertz]

okrandy, you've contributed the correct maximum total between you and your wife.

On the page where you list your individual coverage type for each month, TurboTax presents the individual's contribution limit without taking into consideration the spouse's contribution.  If you indicate that your wife contributed $1,334 (her individual limit without regard for your contribution) after having indicated that you contributed $8,000 to your own HSA, on the next page TurboTax would indicate that between the two of you you have a $1,167 excess contribution and would ask you to select he one(s) who made the excess contribution(s) totaling $1,167.

[Anonymous · Accepted solution]

TT answer was wrong since it's saying that between the two of you, the total contributions to both HSA's can exceed $9,000 - yours $8000 hers $1334. I agree with Dmertz.     the maximum family contribution if both are over 55 but neither is covered by Medicare is $9000.   $7000 family and $1,000 catch up contribution made to each to taxpayer's HSA a/c.  If only one spouse had an HSA the Max would be $8,000 since the catch up must go into each spouses HSA.      Since you contributed $8,000 to your HSA that leaves only the catch up for your spouse since she went on Medicare in March her catchup must be prorated for the months she was not so covered so your computation of 2 * 1000 /12  = 167 is correct. 

[okrandy]

Thank you so much.  So in 2020, I will hit the magical age in August.  So my HSA contribution can be 7/12*(7,100+1,000)=4,725?

[dmertz]

Sound right, as long as the plan that covers you is still a family plan covering you and at least one of your children.