Calculating HSA contribution for the year I start Medicare

[BrianB]

On 9/1/2023 I will start Medicare. DW will remain on our HDHP thru the end of the year (and 9 months of 2024). My understanding is that for 2023 we can contribute based on the "family" limit until my Medicare start date, then DW can contribute as a "single" through the rest of the year. We both qualify for the $1000 catch-up addition to the limits. It's a little complicated because the family limit is not exactly 2x the single limit. This is my calculation:

(8/12) * (7750+1000+1000) = $6500 that is $3250 for me + $3250 for DW
(4/12) * (3850+1000) = $1616 that is $0 for me + $1616 for DW
Total = $8116

Am I calculating this correctly? We want to max out our contributions but don't want to get into the hassle of over-contributing and having to correct it later.

BrianB

[MichaelB]

Quote:

Originally Posted by BrianB On 9/1/2023 I will start Medicare. DW will remain on our HDHP thru the end of the year (and 9 months of 2024). My understanding is that for 2023 we can contribute based on the "family" limit until my Medicare start date, then DW can contribute as a "single" through the rest of the year. We both qualify for the $1000 catch-up addition to the limits. It's a little complicated because the family limit is not exactly 2x the single limit. This is my calculation: (8/12) * (7750+1000+1000) = $6500 that is $3250 for me + $3250 for DW (4/12) * (3850+1000) = $1616 that is $0 for me + $1616 for DW Total = $8116 Am I calculating this correctly? We want to max out our contributions but don't want to get into the hassle of over-contributing and having to correct it later. BrianB

Looks good to me.

[Montecfo]

Do you have two HSA accounts? Or just one.

[BrianB]

Quote:

Originally Posted by Montecfo Do you have two HSA accounts? Or just one.

We have two, one in each of our names. I think that is the only way to get two catch-up contributions.

[MichaelB]

Quote:

Originally Posted by BrianB We have two, one in each of our names. I think that is the only way to get two catch-up contributions.

That’s how I understand it.

[Montecfo]

Quote:

Originally Posted by BrianB We have two, one in each of our names. I think that is the only way to get two catch-up contributions.

Yes. Just being sure since that trips folks up sometimes.

Looks right to me.

[audreyh1]

Because we contributed monthly, each to their own HSA account, this was pretty straightforward as we were also on individual insurance policies. DH’s last contribution was the month before he was Medicare eligible.

Yes, your catch-up contribution is prorated by the months before 65.

[Telly]

IIRC,
There was something about stopping your personal HSA contribution 6 months before starting Medicare. Anybody remember that? Did this requirement go away recently?

[audreyh1]

Quote:

Originally Posted by Telly IIRC, There was something about stopping your personal HSA contribution 6 months before starting Medicare. Anybody remember that? Did this requirement go away recently?

Never seen that. DH certainly didn’t and the tax forms didn’t flag a problem. My understanding is that HSA contributions must stop the month you become eligible for Medicare.

[Irishgirlyc58]

Quote:

Originally Posted by Telly IIRC, There was something about stopping your personal HSA contribution 6 months before starting Medicare. Anybody remember that? Did this requirement go away recently?

It’s my understanding that stopping HSA contributions 6 months prior to Medicare is for those who are still working and contributing to HSA past age 65 so when they apply for Medicare after 65 they could get retroactive MC for 6 months. So very individual circumstances.

I also start MC this September as well. I’m single so have determined that my prorated HSA contribution for this year is $3233- which is really close to the $3250 OP calculated. He gets slightly more because of the family contribution limit.

[Born2Fish]

Quote:

Originally Posted by BrianB On 9/1/2023 I will start Medicare. DW will remain on our HDHP thru the end of the year (and 9 months of 2024). My understanding is that for 2023 we can contribute based on the "family" limit until my Medicare start date, then DW can contribute as a "single" through the rest of the year. We both qualify for the $1000 catch-up addition to the limits. It's a little complicated because the family limit is not exactly 2x the single limit. This is my calculation: (8/12) * (7750+1000+1000) = $6500 that is $3250 for me + $3250 for DW (4/12) * (3850+1000) = $1616 that is $0 for me + $1616 for DW Total = $8116 Am I calculating this correctly? We want to max out our contributions but don't want to get into the hassle of over-contributing and having to correct it later. BrianB

Glad you posted! I start Medicare on Aug1. Not to hijack your thread but would my calculation be...

(7/12) * (7750+1000+1000) = $5687 that is $2843 for me + $2843 for DW
(5/12) * (3850+1000) = $2020 that is $0 for me + $2020 for DW
Total = $7707

DW = 3864 + 1000 (catchup) = 4864
Me = 2260 + 583 (catchup) = 2843

Total = $7707