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HSA max includes employer contribution or not?
Old 11-03-2016, 02:03 PM   #1
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HSA max includes employer contribution or not?

Annual benefit revision (the LAST one for me!). Employer has bumped up their contribution $200. The max allowed is $6750 for 2017. So my max contribution should be $6750-<employer contrib.> ?? What would happen if I have our employer draw more than the equivalent of $6750-<employer contrib.>?
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Old 11-03-2016, 02:07 PM   #2
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The max is the absolute max. That includes your contribution, plus the employers.

If you put too much in, you may get a penalty. Certainly you cannot get a larger tax deduction. I am not sure what happens if you put say $10K in the account only write off the legal limit. I think the honor system applies here.
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Old 11-03-2016, 02:12 PM   #3
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Form 5498-SA is issued to the participant and also to the IRS.

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Old 11-03-2016, 03:00 PM   #4
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Ok, it makes sense to me now. I was thrown off that my wife (works for same megacorp as me) was "allowed" by the benefits app to choose up to $6550 annually, while the company kicked in $1200. But she is '57 and gets the extra $1000/yr "catch" up allowance for a total $7750/yr.
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Old 11-03-2016, 04:54 PM   #5
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Quote:
Originally Posted by doneat58 View Post
Ok, it makes sense to me now. I was thrown off that my wife (works for same megacorp as me) was "allowed" by the benefits app to choose up to $6550 annually, while the company kicked in $1200. But she is '57 and gets the extra $1000/yr "catch" up allowance for a total $7750/yr.
You do realize that the $6750 contribution limit is for both you and your wife combined, not each?
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Old 11-03-2016, 06:21 PM   #6
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You do realize that the $6750 contribution limit is for both you and your wife combined, not each?
+1
on the over funding. I think you have a 6% penalty + you have to withdraw the overfunding + many HSA custodians will charge you a fee for procession the over funding correction. Do not do this "removing the over contribution " like a withdraw for medical expenses. You'll likely create more headaches for yourself.

On the "catch up provisions", each one eligible for contributing for the catch up provision must deposit said funds in an HSA in their own name.
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Old 11-03-2016, 07:58 PM   #7
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You do realize that the $6750 contribution limit is for both you and your wife combined, not each?
Yes.. I am retiring at the end of the year, had been contributing to the HSA, so now we are shifting stuff over to her, Healthcare, HSA, Dental, etc. So she will be the only one contributing to the HSA. She will work another 3-4 year.

Thanks for the input, it is clear now.....
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Old 11-04-2016, 07:14 AM   #8
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Originally Posted by doneat58 View Post
Yes.. I am retiring at the end of the year, had been contributing to the HSA, so now we are shifting stuff over to her, Healthcare, HSA, Dental, etc. So she will be the only one contributing to the HSA. She will work another 3-4 year.

Thanks for the input, it is clear now.....
you do know that having earned income is not a requirement for funding an HSA. Having an HSA compatible insurance plan is. Now if you are 55 or older during next year and covered by an HSA plan, you could contribute your catch up to your account while you wife could contribute to hers.
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