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Old 03-07-2018, 06:47 PM   #21
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I am in the same situation like you. I will not bother to rollback that $50 and go through hassle of paper work. Instead I'll do following at tax time next year.

"Leave the excess contributions in your HSA and pay 6% excise tax on excess contributions. Next year you may want to consider contributing less than the annual limit to you HSA to make up for the excess contribution during the previous year."

This will cost me extra $3 next year at tax filing.
After reading on my HSA's site and finding the form, it appears that requesting withdraw can incur a $20 processing fee. Then I looked up the penalty and as mentioned above, found it to be $3. I'll pay the $3 versus spending any time on this. Good to know though so I handle it correctly on my tax return.
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Old 03-07-2018, 08:19 PM   #22
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I am in the same situation like you. I will not bother to rollback that $50 and go through hassle of paper work. Instead I'll do following at tax time next year.

"Leave the excess contributions in your HSA and pay 6% excise tax on excess contributions. Next year you may want to consider contributing less than the annual limit to you HSA to make up for the excess contribution during the previous year."

This will cost me extra $3 next year at tax filing.
Good idea!

I think a lot of HSA accounts charge fees for returning excess contributions. But maybe they'll make an exception in this case.
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Old 03-07-2018, 08:21 PM   #23
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We also do monthly contributions, so in the last month I still can make any adjustments.
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Old 03-07-2018, 09:51 PM   #24
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I know little to nothing about HSAs. But I thought that the 6% excess contribution excise taxes on IRA contributions was assessed every year that the excess remained in the account. Some of the posters above imply that it is a one-time tax. Are HSAs different from IRAs in this regard?
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Old 03-07-2018, 09:54 PM   #25
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I know little to nothing about HSAs. But I thought that the 6% excess contribution excise taxes on IRA contributions was assessed every year that the excess remained in the account. Some of the posters above imply that it is a one-time tax. Are HSAs different from IRAs in this regard?
The individual can simply put in a smaller contribution the next year to make it within the limits, no?
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Old 03-07-2018, 11:05 PM   #26
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Some of the posters above imply that it is a one-time tax. Are HSAs different from IRAs in this regard?
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The individual can simply put in a smaller contribution the next year to make it within the limits, no?

That's what I'm thinking. Next year just contribute $50 less than the max and I should be all set. I wouldn't think you'd have to actually trace the dollars. Money is fungible and all that.
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Old 03-07-2018, 11:35 PM   #27
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That's what I'm thinking. Next year just contribute $50 less than the max and I should be all set. I wouldn't think you'd have to actually trace the dollars. Money is fungible and all that.
It wouldn't work in the case of the IRA 6% excise tax on excess contributions. The rules may be different with HSAs. I don't really know.
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Old 03-08-2018, 06:16 AM   #28
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It is different with HSAs. It's a great solution. You don't even have to account for the gains.
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Old 03-08-2018, 11:21 AM   #29
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It is different with HSAs. It's a great solution. You don't even have to account for the gains.
Good to know. I don't qualify for an HSA currently but may in a few years, so I'll have to read up on them.
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Old 03-08-2018, 11:35 AM   #30
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HSA Bank confirmed they do not charge a fee for this.
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Old 03-08-2018, 01:57 PM   #31
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HSA Administrators just sent me this email today spelling everything out:

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The IRS has changed the HSA Family contribution limit from $6,900 to $6,850 for tax year 2018. This is due to a change in the way Consumer Price Index (CPI) is calculated in the Tax Cuts and Jobs Act of 2017.

If you currently have Family coverage, you can make changes to already scheduled contributions on our website by following the steps below. To make changes to your contributions through payroll deduction with your employer, please contact your HR administrator.

If you currently have Individual health insurance coverage, your contribution limit of $3,450 has not changed and no action is needed. The $1,000 catch-up contribution (age 55+) will also remain the same.
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Old 03-08-2018, 03:46 PM   #32
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We don't have a Family policy, we have 2 individual policies and then I do the over 55 extra $1000 for just one of us because we only have one HSA account.

Without taking into consideration the over 55 amount, is our limit $3450 x 2=6900? Or is it $6850 because we only have one HSA account?

We have individual HDHP policies but just one HSA.
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Old 03-08-2018, 04:09 PM   #33
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We don't have a Family policy, we have 2 individual policies and then I do the over 55 extra $1000 for just one of us because we only have one HSA account.

Without taking into consideration the over 55 amount, is our limit $3450 x 2=6900? Or is it $6850 because we only have one HSA account?

We have individual HDHP policies but just one HSA.
$4450 ($3450+$1000). Self-only HDHPs require contributions be made to that person's HSA. The second person needs their own HSA.

Quote:
No Joint HSA

Although there is a higher contribution limit for family coverage and, once contributed, the money in the HSA can be used to cover eligible medical expenses incurred by anyone in the family, the HSA is in one individualís name only. There is no joint HSA. Each personís eligibility to contribute to his or her HSA is determined separately.

2 Self-Only Plans Are Not Family Coverage

If husband and wife each has their own self-only HDHP, they can only contribute to two separate HSAs in their own names at the individual level.

Reference: https://thefinancebuff.com/hsa-contr...r-changes.html
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Old 03-08-2018, 07:09 PM   #34
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$4450 ($3450+$1000). Self-only HDHPs require contributions be made to that person's HSA. The second person needs their own HSA.
Thanks for explaining that and including a reference.

The last time we had an HDHP and made HSA contributions was 2014 and 2015. We made withdrawls in 2015 just for 2014 expenses. Now in 2018 we have the individual plan HDHPs and just one HSA in DHs name.

Looks like I'll be opening another HSA, in my name, to make a contribution for 2018.

Just to be clear, I can withdraw from DHs HSA to reimburse us for 2015, 2016 and 2017 expenses, can't I? Those years were non HDHP plans. No contributions made.
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Old 03-09-2018, 07:03 AM   #35
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Just to be clear, I can withdraw from DHs HSA to reimburse us for 2015, 2016 and 2017 expenses, can't I? Those years were non HDHP plans. No contributions made.
Yes, expenses for both can be withdrawn if you did not itemize them as medical deductions on the tax returns. Here is a thread that goes down the rabbit hole of HSA withdrawals and itemizing medical expenses.

http://www.early-retirement.org/foru...hsa-88977.html
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Old 03-09-2018, 09:12 AM   #36
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Yes, expenses for both can be withdrawn if you did not itemize them as medical deductions on the tax returns. Here is a thread that goes down the rabbit hole of HSA withdrawals and itemizing medical expenses.

http://www.early-retirement.org/foru...hsa-88977.html
We haven't itemized for a long time so that's not an issue.

Right now we have a little over $3200 in DHs HSA. $2300 of that is what's leftover from 2014+2015 contributions minus reimbursing us for 2014 expenses. The other $900 is growth.

I'll add $4450 ($3450+$1000) to DHs HSA and open another one for me and contribute up to $4450 ($3450+$1000) to mine.

Our expenses since we started the HSA in 2014 have been
2014 $12,856 (HDHP, $7550 HSA contribution)
2015 $ 4,711 (HDHP, $7650 HSA contribution)
2016 $ 2,053 (non HDHP, no HSA contribution)
2017 $ 1,179 (non HDHP, no HSA contribution)
--------------
Total $20,799
Total contributions $15,200
Withdrawn in 2015 $12,856

If I open my HSA in 2018 I can only withdraw expenses (for either of us) from 2018 or later, correct? But DH's HSA can be used for most of the older expenses because it has been open since 2014.

My plan is to leave what I can in the HSAs, but I'd like to be sure just in case.
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Old 03-09-2018, 09:20 AM   #37
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Yes, expenses for both can be withdrawn if you did not itemize them as medical deductions on the tax returns. Here is a thread that goes down the rabbit hole of HSA withdrawals and itemizing medical expenses.

http://www.early-retirement.org/foru...hsa-88977.html
Are you sure about that? This is the IRS Form 8889 (HSA) definition of a 'qualified medical expense' (see bold):

Quote:
Qualified Medical Expenses
Generally, qualified medical expenses
for HSA purposes are unreimbursed
medical expenses that could otherwise
be deducted on Schedule A (Form
1040). See the Instructions for
Schedule A and Pub. 502, Medical and
Dental Expenses. Expenses incurred
before you establish your HSA are not
qualified medical expenses. If, under
the last-month rule, you are considered
to be an eligible individual for the entire
year for determining the contribution
amount, only those expenses incurred
after you actually establish your HSA
are qualified medical expenses.
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Old 03-09-2018, 11:08 AM   #38
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If I open my HSA in 2018 I can only withdraw expenses (for either of us) from 2018 or later, correct? But DH's HSA can be used for most of the older expenses because it has been open since 2014.
Your HSA can be used for expenses (for either) incurred after your account is opened and funded with at least $1. Some administrators will deposit $1 for you to make it legal. His HSA needs to be used for the qualified expenses incurred in early 2018 and prior.

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Originally Posted by zinger1457 View Post
Are you sure about that? This is the IRS Form 8889 (HSA) definition of a 'qualified medical expense' (see bold):
Yes, his HSA was opened in 2014 so his HSA can be used for those older expenses incurred by the family. The post referenced his HSA. "Just to be clear, I can withdraw from DHs HSA to reimburse us for 2015, 2016 and 2017 expenses, can't I?"
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Old 03-09-2018, 11:09 AM   #39
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IRS just reduced the 2018 HSA for family from $6,900 to $6,850. For those of us who made the full contribution already (like me), we now have excess contribution that needs to be removed with income on before the due date of tax return
What a hassle!
Anyway, spoke to HSA bank, received a form to withdraw the excess contribution plus interest received.

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Old 03-09-2018, 11:29 AM   #40
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Thanks for all the precise info posted here. I opened an HSA in my name this morning ($100 contribution for 2018) and changed DHs existing HSA from Family to Single as of 1/1/18.

So far in 2018 our only medical expense is DH's dentist appt. last month.

Time to start our spreadsheets for 2018!
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