HSA question

[ripper1]

I am a year and a half younger than my wife. Can I contribute the full family amount of 7850 to my HSA when she turns 65? I suppose I could the full amount prior to her birthday in July. Then what happens the following year when she is already 65 and medicare and I am still only 64?

 

[Bir48die]

i am a year and a half younger than my wife. Can i contribute the full family amount of 7850 to my hsa when she turns 65? I suppose i could the full amount prior to her birthday in july. Then what happens the following year when she is already 65 and medicare and i am still only 64?

you can only contribute and deduct on your taxes contributions for your wife prorated for the six months prior to her 65 birthday. Following that you can continue to contribute your full amount. The year that you turn 65 you will be under the same restrictions.

 

[ripper1]

you can only contribute and deduct on your taxes contributions for your wife prorated for the six months prior to her 65 birthday. Following that you can continue to contribute your full amount. The year that you turn 65 you will be under the same restrictions.

So, if I am reading this correctly I can contribute in 2018 the full 3450 for myself and then if I divide 3400 x 12 = 283.33 for her......it would be 283.33 x 5 months prior to her bday or 1416. So 1416 + 3450= 4866. Is this correct.

 

[gindie]

I am a year and a half younger than my wife. Can I contribute the full family amount of 7850 to my HSA ...

BTW, 2018 family limit was recently returned to 7900 (after age 50), by the IRS.

 

[Bir48die]

That is correct. I'm assuming she's in a HDHP now. Once she moves to Medicare she is considered to be in a low deductible plan and doesn't qualify. However you can still use the money accumulated to cover copy's and out of pocket costs.

 

[ripper1]

That is correct. I'm assuming she's in a HDHP now. Once she moves to Medicare she is considered to be in a low deductible plan and doesn't qualify. However you can still use the money accumulated to cover copy's and out of pocket costs.

Thanks

 

[ripper1]

Has anybody used the HSA Authority by Old National Bank. I am considering opening an account with them.

 

[ripper1]

A little confused by the 1000 dollar catch up for 55 yr olds in HSA. Does this mean if my wife and I open our own account we each get a 1000 dollar catch up? So 3450 + 1000 each?

 

[SumDay]

Goes by family. It's $7900 for a family:


2018 HSA Contribution Limits – HSACenter


Haven't heard of the ONB HSA. Luckily, our local bank has a good "free" one if we maintain a certain balance in our other accounts, which we do. Good Lord willin' and the creek don't rise.

 

[MBSC]

A little confused by the 1000 dollar catch up for 55 yr olds in HSA. Does this mean if my wife and I open our own account we each get a 1000 dollar catch up? So 3450 + 1000 each?

Goes by family. It's $7900 for a family:


2018 HSA Contribution Limits – HSACenter

$7900 is the per account limit. The other spouse is allowed to open their own HSA and contribute their own $1000 catch-up for a total of $8900 spread across the two HSAs.

Catch ups are also prorated in the year you turn 65.

The catch-up provision for people over age 55 is $1,000. This means if you are aged 55 or over, you can add an additional $1,000 toward the annual contribution. This means for 2018 you can contribute up to $4,450 for a single filer and $7,900 for a family if you are 55 or older, with only one HSA.

In the case where both spouses open an HSA, and are both over 55, the annual family maximum contribution could reach $8,900.

Reference: https://www.medmutual.com/For-Indiv...e-Basics/FAQs-on-Health-Savings-Accounts.aspx

Catch-up contributions: One or both spouses may make catch-up contributions, if age eligible. For example, if both spouses are age 55 or older by the end of 2018, total contributions to their HSAs cannot exceed $8,900 ($6,900 maximum limit + $1000 catch-up for each spouse), when both have family coverage.

Reference: https://www.hsaservicecenter.com/hsasc/about.aspx

 

[ripper1]

$7900 is the per account limit. The other spouse is allowed to open their own HSA and contribute their own $1000 catch-up for a total of $8900 spread across the two HSAs.

Catch ups are also prorated in the year you turn 65.

Great explanation. Thanks MBSC

 

[ripper1]

Can either spouse use each others account? Or because we have separate accounts only that person can use their own account for health payments?

 

[gauss]

Can either spouse use each others account? Or because we have separate accounts only that person can use their own account for health payments?

The HSA accounts are individually owned, however, distributions from your account can be used to pay for your spouses medical expenses.

If memory serves, I think you can pay for medical expenses for anyone listed on your tax return.

-gauss

 

[ripper1]

The HSA accounts are individually owned, however, distributions from your account can be used to pay for your spouses medical expenses.

If memory serves, I think you can pay for medical expenses for anyone listed on your tax return.

-gauss

Thanks Rainman....I mean Gauss