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HSA Issue
Old 11-23-2015, 06:39 PM   #1
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HSA Issue

Starting 1/1/16, spouse and I will be eligible for HSA based on our ACA policy for the two of us (family coverage). I am 58 and spouse will be 65 in October of 2016, at which time spouse will get Medicare. I will continue to have an HSA qualified health policy for a single person coverage.

Trying to figure out whether we need 2 HSA's, one in each of our names, or a single HSA in one of our names. Also trying to figure out the maximum contributions that can be made. Any help would be appreciated.

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Old 11-23-2015, 07:35 PM   #2
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to max out including catch up provisions, you need 2 HSAs.
Probably easier to do it with 2 plans. If you use one, then you have to switch plans when one goes on medicaid, the other has to go onto a single plan.

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Old 11-23-2015, 07:40 PM   #3
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Use two HSAs and quit contributing to the spouse's HSA in Oct.

That way you can get the max contribution limits, and keep contributing to your HSA when your spouse can no longer contribute to his/hers.

HSAs have to be in each individual's names, even though spouses can pay medical expenses for each other.

The 2016 annual contribution limits are here:
But these are shown for a full year. You have to be eligible for all twelve months to contribut the full amount.

Since you have a family policy, the family limit applies to your total contribution between the two of you. But you will have to subtract the 3 months your spouse is no longer eligible.
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Old 11-24-2015, 08:30 AM   #4
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Thanks for the responses. We will have a "family" policy for 2016. please correct me if I am wrong in the forgoing summary of my understanding.

If I understand correctly, we should have 2 accounts, one for each of us. We will be allowed to contribute a combined total 2/3 plus the catch-up for 1/1/16 through 9/16 in the amount of $5115 ($6750 + $1000 x .66). Then, I will be permitted to contribute to my account the sum of $1435 ($3350 + $1000 x .33). This would make the total contribution for the year in the amount of $6550. The amount is about $1250 less than had my spouse not gone on to Medicare.

Did I figure this correctly? Thanks again.
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Old 11-24-2015, 11:14 AM   #5
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Except: your method requires that you change health insurance plan once your husband moves off the family plan and on to Medicare. Check with your employer (if this is how you get your coverage) or your broker to be sure.

Whether your husband qualifies for Medicare in September or October depends on his birthday. You can check when he will be eligible for Medicare with This affects how much he can contribute to an HSA.

Once you know what month he is eligible, you can check your figures with your HSA before you make contributions.
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Old 11-24-2015, 06:25 PM   #6
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Thanks, Gotadimple. Yes, I have no choice but to go to an individual plan when my spouse is enrolled in Medicare, which will be 10/1/16.
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Old 11-24-2015, 07:04 PM   #7
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FYI- you each can do a ONE TIME tax free transfer from retirement funds to fund your HSA if you do so before Medicare. DH would still need to be prorated
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Old 11-24-2015, 07:41 PM   #8
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never mind

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