HSA contribution limit (for 2019) if I have a HDHP and my spouse has secondary insurance on it

[attrition99]

For 2019,

- I had a HDHP plan thru my employer

- My spouse had a PPO plan thru her employer

- My spouse had secondary insurance on my plan. I went thru the COB (Co-ordination of benefits) process and it was determined that I could contribute up to the 'Family limit' of $7000 to my HSA, which is what I did.

Was the right thing done?

If so, when using tubotax, for the question 'What type of HDHP coverage did I have for 2019?', do I select myself as being under a family plan

And under 'What type of HDHP did my spouse have on December 1, 2019?', should I select Family, Self-Only or None? (She had secondary HDHP insurance and primary PPO insurance.)

[Anonymous]

a PPO plan can be a HDHP.  A PPO allows a person to see the doctor of their choice whereas with an HMO plan you're limited by the doctors you can see.  Thus being insured under a PPO plan has nothing to do with whether it's a HDHP.

if your benefits coordinator says you qualify for the max $7,000 contribution they should know.  Only they could answer for sure that the PPO plan is a HDHP

What type of HDHP coverage did I have for 2019?', do I select myself as being under a family plan - YES

And under 'What type of HDHP did my spouse have on December 1, 2019?', should I select Family, Self-Only or None? Family. 

the rules are if either spouse has family coverage on 12/1 both spouses are treated as having family coverage.

if both spouses have family coverage, each spouse is treated as having family coverage with the lower annual deductible of the plans. (thus it would seem that if there's family coverage, if one is covered by a non-HDHP neither can contribute to an HSA)

[attrition99]

@Anonymous 

I recently found out that my spouse's primary coverage was not a HDHP (i.e. she had a primary non-HDHP and a secondary HDHP).

Would that mean that the answer to 'What type of HDHP did my spouse have on December 1, 2019?' is now None? I base this on the fact that she would not be an eligible individual based on her plan (and thus Rules for married people in Pub 696 wouldn't apply which states 'The rules for married people apply only if both
spouses are eligible individuals').

Or is she still eligible because she's covered by my plan (even if as a secondary) which would then mean the answer would be None.

[Anonymous]

from pub 969 (modified for your situation)

Qualifying for an HSA
To be an eligible individual and qualify for an HSA, you must meet the following requirements.
• You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.
• You have no other health coverage (a non-HDHP)
• You aren’t enrolled in Medicare.
• You can’t be claimed as a dependent on someone
Under the last-month rule, you are considered to be an eligible individual for the entire year if you
are an eligible individual on the first day of the last month of your tax year (December 1 for most taxpayers).
If you meet these requirements, you are an eligible individual even if your spouse has non-HDHP family coverage, provided your spouse’s coverage doesn’t cover you.

is she still eligible because she's covered by my plan (even if as a secondary) 

Since you have HDHP family coverage on 12/1/19 both are treated as having family coverage all year. it also seems your coverage does not include Non-HDHP coverage. I conclude that you can contribute $7,000 but it all has to be to your a/c. 

[attrition99]

I agree with your assessment about me being an eligible individual.

I am less sure of my wife qualifying as an eligible individual though.

Isn't she disqualified because of this (i.e. her primary non-HDHP coverage):

• You have no other health coverage (a non-HDHP)

[Anonymous · Accepted solution]

you are correct she is ineligible and so can not contribute to her HSA a/c.

however, it seems that under the rules since you ONLY have a HDHP that is a family plan you can make a $7,000 contribution to your HSA. 

tt firm 8889-t

line 1) check the box to indicate your coverage under a HDHP - check family since that's what you had

line 2) enter the contributions you made to YOUR HSA a/c     I assume this was $7,000 (do not include any employer contributions) do if the entire $7,000 was thru your employer enter o (the amount coded a 12w on your return will flow to the form)

line 3a) smart worksheet - if you had family HDHP coverage on 12/1/19 you had it every month (you only have to click the December family checkbox

line 6) smart worksheet.   the IRS allows splitting of the contribution any way you want, but that must follow the account that received the contributions.    there is no such thing as a joint HSA a/c.  Spouse A may have one and spouse B may have one.  all the contributions for the year except the over 55 catch up can go into one a/c or the other. the over 55 can only go into that person's HSA if they are eligible.  so unless some of the $7000 went into her HSA leave 6c blank

f you personally made all the  HSA contributions into your a/c you should see on schedule 1 line 12 the deductible HSA contributions.

FYI there was a somewhat similar question a few weeks ago which goes something like this.   husband over 55 covered by family HDHP all year and deferred starting Medicare (if you are on Medicare its a non-HDHP so you don't qualify to contribute to HSA.  wife starting medicare in April 

husband could make make $8,000 regular $7000 + $1000 catchup

wife could make catch up of $250  (1000 catch up prorated for 3/12 of year - period not covered by medicare.