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HSA Catch Up Contributions
Old 12-16-2016, 07:31 AM   #1
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HSA Catch Up Contributions

So I have an HSA eligible family insurance plan and I've already contributed the maximum $6750 for 2016. Getting ready to make the catch up contribution of $1000 into my account. If I read the rules correctly my wife could also contribute an additional $1000 of catch up, but only if she contributes it into a separate account in her name. Is this correct? Not sure why they would have this stipulation, since the rules say that either account can be used to pay for any expenses incurred by the family. One insurance policy insuring husband and wife, but 2 HSAs required to qualify for the $1000 each catch up contribution. Is this correct?
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Old 12-16-2016, 07:55 AM   #2
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If you have an HSA-eligible family health insurance policy and you’re 55 or older, you can contribute up to $6,750 in 2016, plus the $1,000 catch-up contribution, bringing your total contribution to $7,750 for the year. If you have a family policy and both you and your spouse are 55 or older (and have not yet signed up for Medicare), then both of you can contribute the extra $1,000.

But you can’t both make the catch-up contributions to the same account -- your spouse will have to open a separate HSA for his or her catch-up contributions. Each HSA is an individually owned trust account, similar to an IRA, and each catch-up contribution must be made separately to your own account, says Roy Ramthun, president of HSA Consulting Services. As long as you have a family health insurance policy, both spouses can open a separate HSA and contribute their own $1,000 catch-up contribution. You can split up the $6,750 in regular contributions however you’d like between the two accounts.
Making Catch-Up Contributions to a Health Savings Account
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Old 12-16-2016, 07:58 AM   #3
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Yes, and as the OP asked - the spouse's contribution has to be in their own separate HSA.
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Old 12-16-2016, 08:10 AM   #4
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Originally Posted by Dan32 View Post
So I have an HSA eligible family insurance plan and I've already contributed the maximum $6750 for 2016. Getting ready to make the catch up contribution of $1000 into my account. If I read the rules correctly my wife could also contribute an additional $1000 of catch up, but only if she contributes it into a separate account in her name. Is this correct? Not sure why they would have this stipulation, since the rules say that either account can be used to pay for any expenses incurred by the family. One insurance policy insuring husband and wife, but 2 HSAs required to qualify for the $1000 each catch up contribution. Is this correct?
Yes - separate accounts required for each to do the $1000 catch up contribution.

Once you turn 65 and become eligible for Medicare, you won't be able to contribute to your HSA account anymore. If your wife is younger, she'll need her own account anyway to continue her HSA contributions as you will no longer be on a joint/family insurance policy.

Even though HSA rules allow for family contributions and family expenses, they are held in individual names, and the age rules apply to the name on the account.
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