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Questions on Trad IRA and HSAs
Old 11-01-2017, 04:23 PM   #1
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Questions on Trad IRA and HSAs

Thank you in advance for reading:

HSAs - Married filing jointly. So, last year, I was the primary and contributed $7750 and DH contributed $1000. Can we switch this year and make him the primary (switching amounts basically) so that we end up with equal HSAs? (Yes to enrolled in HDHP HSA eligible plan).

TIRA - He worked a little this year - gross of $5,055.80 - and contributed only $559.14 to the company 403b plan. So - can he contribute $4496.66 to a (personal) traditional IRA acct at, say Schwab, etc., (with catchup)?
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Old 11-01-2017, 05:07 PM   #2
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I think the answer to my first question is, yes, no problem.
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Old 11-01-2017, 05:11 PM   #3
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As far as the first question: what do you mean by "primary"?
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Old 11-01-2017, 06:01 PM   #4
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Eventually each of you probably wants an HSA. HSAs are individual accounts even though both a spouse may contribute on behalf of themselves and their spouse, and they may pay for medical care for any family member out of their HSA. Ultimately, whomever reaches 65 first can no longer contribute, so the younger spouse needs their own account to continue to contribute. It also seems that the after 55 catch-up contribution is limited per account. For each spouse to contribute the extra $1000, they need their own account.

In other words - there is not such a thing as "primary" or "secondary" account holder - there is no such thing as a joint HSA.
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Old 11-01-2017, 06:15 PM   #5
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Quote:
Originally Posted by spncity View Post
Thank you in advance for reading:

HSAs - Married filing jointly. So, last year, I was the primary and contributed $7750 and DH contributed $1000. Can we switch this year and make him the primary (switching amounts basically) so that we end up with equal HSAs? (Yes to enrolled in HDHP HSA eligible plan).

TIRA - He worked a little this year - gross of $5,055.80 - and contributed only $559.14 to the company 403b plan. So - can he contribute $4496.66 to a (personal) traditional IRA acct at, say Schwab, etc., (with catchup)?
Quote:
Originally Posted by audreyh1 View Post
Eventually each of you probably wants an HSA. HSAs are individual accounts even though both a spouse may contribute on behalf of themselves and their spouse, and they may pay for medical care for any family member out of their HSA. Ultimately, whomever reaches 65 first can no longer contribute, so the younger spouse needs their own account to continue to contribute. It also seems that the after 55 catch-up contribution is limited per account. For each spouse to contribute the extra $1000, they need their own account.

In other words - there is not such a thing as "primary" or "secondary" account holder - there is no such thing as a joint HSA.
I would hope they already have two accounts as they did 7750 and 1000. This would have 2 catch ups.

If you both are on the same family plan, you each can put your own catch up contribution in your own HSA and the non catch up can go in either account. IIRC with two individual plans you may be stuck contributing to your own plan.
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Old 11-01-2017, 06:19 PM   #6
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My understanding is Yes to the first question. As Audrey says, there is no primary/secondary, and you can split everything but the catch up contribution however you want. So after you even it up, you might as well just split it down the middle in future years.

Second question, my understanding is also Yes. You didn't detail your tax situation, but would it be better to go to a Roth IRA rather than a tIRA?
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Old 11-01-2017, 06:26 PM   #7
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Yes, we each have our own HSA account due to the catch-up. Not sure why I thought there was terminology about "primary" - but you all have cleared that up.

Follow-up question: Should we put a little more of the HSA $$ into the account of the older person if one cannot contribute after 65? The younger will have more time to make contributions.

About the tIRA - it's possible Roth would be better. Have to crunch numbers.

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Old 11-01-2017, 06:54 PM   #8
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Follow-up question: Should we put a little more of the HSA $$ into the account of the older person if one cannot contribute after 65? The younger will have more time to make contributions.

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Shouldn't matter. You can pay expenses for either, plus dependents, out of either account.

Make a deal with him. Let him get all but your $1000 catch-up. In return you get something else, that has actual value.
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Old 11-01-2017, 07:15 PM   #9
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Quote:
Originally Posted by audreyh1 View Post
Eventually each of you probably wants an HSA. HSAs are individual accounts even though both a spouse may contribute on behalf of themselves and their spouse, and they may pay for medical care for any family member out of their HSA. Ultimately, whomever reaches 65 first can no longer contribute, so the younger spouse needs their own account to continue to contribute. It also seems that the after 55 catch-up contribution is limited per account. For each spouse to contribute the extra $1000, they need their own account.

In other words - there is not such a thing as "primary" or "secondary" account holder - there is no such thing as a joint HSA.
I did not know that.
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Old 11-01-2017, 07:18 PM   #10
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Shouldn't matter. You can pay expenses for either, plus dependents, out of either account.

Make a deal with him. Let him get all but your $1000 catch-up. In return you get something else, that has actual value.
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