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Old 02-03-2020, 01:48 PM   #21
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You can contribute to an HSA from savings, as long as you currently have HSA eligible health insurance, not income required at all.
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Old 02-03-2020, 01:49 PM   #22
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Originally Posted by audreyh1 View Post
You don't have to have work income to contribute to an HSA account.

All that is required is to have HSA-eligible health insurance. That's it.

As retirees we've opted for HSA eligible health insurance each year and made HSA contributions each year, and will each continue to do so until 65 years old.

Oh, great, I can still make a 2019 contribution up until April 2020!
And a 2020 contribution also, earned income is not a requirement!
Oh, nope not for 2020, I'll be moving to Medicare and dropping my HDHP.


Now can I contribute if I only had two months with an HDHP in 2020?


That's why I love these groups, I learn new things.
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Old 02-03-2020, 01:55 PM   #23
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Yes, for those months you are on an HSA eligible insurance plan. HDHP is not sufficient - you need to make sure it meets all the HSA requirements. Check with your insurer.
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Old 02-03-2020, 01:56 PM   #24
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It has to be more than a HDHP... it has to be a HSA-eligible HDHP... not all HDHPs are HSA-eligible... in fact, it seems that more are NOT HSA-eligible than are.

However, if it is a HSA eligible HDHP then you could do 2/12s in 2020.... they prorate it by month where you don't have a HSA-eligible plan for the entire year.
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Old 02-03-2020, 01:59 PM   #25
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DW and I have a family medical insurance policy. It is HDHP, HSA eligible and has quite a high deductible. Even if the deductible were considered to be divided by two the dollar value would be high enough to meet the HDHP / HSA threshold.

However, it's a family policy. So the deductible includes both of us. Regardless of who incurs the medical expense whether it be a "procedure," an office visit, etc. it goes against the family deductible. This is a pre-ACA policy that we pay for and deduct our premium on our taxes every year.

I think we are only allowed to have a family HSA. Is that correct?
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Old 02-03-2020, 02:11 PM   #26
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DW and I have a family medical insurance policy. It is HDHP, HSA eligible and has quite a high deductible. Even if the deductible were considered to be divided by two the dollar value would be high enough to meet the HDHP / HSA threshold.

However, it's a family policy. So the deductible includes both of us. Regardless of who incurs the medical expense whether it be a "procedure," an office visit, etc. it goes against the family deductible. This is a pre-ACA policy that we pay for and deduct our premium on our taxes every year.

I think we are only allowed to have a family HSA. Is that correct?
No, there is no family HSA. HSAs are individual accounts.. You can each have an HSA. You are subject to the family contribution limit since you have family insurance. But each of you can still make the 55+ catchup contribution. The only catch is the the second contribution will have to be made in a second account.
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Old 02-03-2020, 02:27 PM   #27
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Claiming expenses from either account is fine. You can pay spouse's qualified medical expenses, no problem.
"Qualified medical expenses" being the key. Although Medicare and other health care coverage if you are 65 or older (other than premiums for a Medicare supplemental policy, such as Medigap) are considered eligible expenses, only HSA funds from the Medicare age spouse (65 or older) may be used to pay those.

If the account beneficiary isn’t 65 or older (me), Medicare premiums for coverage of your spouse (who is 65 or older-my DW) generally aren’t qualified medical expenses.

DW became Medicare eligible in January. I have another 2 years to go. Until I become of Medicare age, her Medicare and Part D premiums can only be paid from her HSA account.
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Old 02-03-2020, 02:36 PM   #28
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DW became Medicare eligible in January. I have another 2 years to go. Until I become of Medicare age, her Medicare and Part D premiums can only be paid from her HSA account.
Ah - I had forgotten that little detail. Good thing DH’s account should cover his Medicare premiums until I reach 65.
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Old 02-03-2020, 03:18 PM   #29
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It has to be more than a HDHP... it has to be a HSA-eligible HDHP... not all HDHPs are HSA-eligible... in fact, it seems that more are NOT HSA-eligible than are.

My plan is eligible.






However, if it is a HSA eligible HDHP then you could do 2/12s in 2020.... they prorate it by month where you don't have a HSA-eligible plan for the entire year.[/QUOTE]


So I can put in $1,333 for 2019. 2 / 12 x $8,000=$1,333
I wonder if I should or can open an individual plan for my wife, since she is still on the HDHP. Or Since both her and my kids are still under the plan,
(we're just dropping me) can she still fund the Family Plan?
Do I need to switch names on the account or open a separate account?
It may be worth a little paperwork, she still has 5 years, before Medicare.
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Old 02-03-2020, 06:33 PM   #30
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My plan is eligible.






However, if it is a HSA eligible HDHP then you could do 2/12s in 2020.... they prorate it by month where you don't have a HSA-eligible plan for the entire year.

So I can put in $1,333 for 2019. 2 / 12 x $8,000=$1,333
I wonder if I should or can open an individual plan for my wife, since she is still on the HDHP. Or Since both her and my kids are still under the plan,
(we're just dropping me) can she still fund the Family Plan?
Do I need to switch names on the account or open a separate account?
It may be worth a little paperwork, she still has 5 years, before Medicare.[/QUOTE]

your wife should open her own HSA. you could put in 2/12 of your individual amount and your wife could put in the individual max.
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Old 02-03-2020, 06:47 PM   #31
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OK - all that was extremely helpful. Looks like our household has not actually made a boo-boo (yet).

We are on an HSA eligible HDHP family plan. Although we only have one HSA account, paying for either spouse out of it was okay (the fact it behaves as joint account in this regard was confusing). The family limit can only account for one catch-up contribution however and this is what we did. So, we left a little money on the table by not having two accounts (spouse catch up contribution).

This year, we both turn 65 (me in April, he in November). Since contributions will be limited to those months prior to Medicare, I'm thinking we will set up an account for DH which he can contribute 10/12 of the total (individual allowable amount + his catch up). I will contribute 3/12 of the total (individual allowable amount + my catch up) to our existing account.
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Old 02-03-2020, 08:36 PM   #32
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Quote:
Originally Posted by Time2 View Post
My plan is eligible.






However, if it is a HSA eligible HDHP then you could do 2/12s in 2020.... they prorate it by month where you don't have a HSA-eligible plan for the entire year.


So I can put in $1,333 for 2019. 2 / 12 x $8,000=$1,333
I wonder if I should or can open an individual plan for my wife, since she is still on the HDHP. Or Since both her and my kids are still under the plan,
(we're just dropping me) can she still fund the Family Plan?
Do I need to switch names on the account or open a separate account?
It may be worth a little paperwork, she still has 5 years, before Medicare.
Your wife must have her own HSA. You can no longer contribute to yours once you reach Medicare eligibility, and she can’t contribute to yours either. She must contribute to her own. You don’t have a family HSA - it’s yours.
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Old 02-04-2020, 05:27 AM   #33
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REWahoo - thanks so much for posting that IRS tutorial, that was great information. Add to that other posters questions and audreyh1’s clear explanations I think I finally get it!
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HSA question
Old 02-04-2020, 06:20 AM   #34
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HSA question

Opps - one more question/clarification: when DH and I each have our own HSAs, qualified medical expenses may continue to be reimbursed from either account for either of us with the exception of Medicare premiums which must be paid specifically from the Medicare recipient account?
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Old 02-04-2020, 06:28 AM   #35
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I think once an individual reaches 65 they can pay spouses and their own Medicare premiums from their HSA account.
https://www.kiplinger.com/article/in...-tax-free.html

Just to be clear which Medicare premiums are eligible:
Quote:
Once enrolled in Medicare, an individual can no longer contribute to a Health Savings Account (HSA). However, a Medicare beneficiary can use HSA distributions to pay for qualified medical expenses, such as premiums for Part B, a Medicare Advantage plan (Part C), a prescription drug plan (Part D), and long-term care insurance, and Medicare expenses, such as copayments and deductibles.
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HSA question
Old 02-04-2020, 06:53 AM   #36
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HSA question

Ok - since I become a Medicare beneficiary first, Medicare premiums (not including Medigap premiums) can be paid from my HSA but not from DH HSA because he is not yet a Medicare beneficiary.

Then, when both DH and I are on Medicare, we would be able to pay Medicare premiums from either account.

Is it just me or does all this feel like one of those logic statement puzzles? Part of what has been difficult (for me) is the nomenclature of an individual account that allows joint activity. That is, the family (joint) limit may be deposited into the individual account with the exception of the non-account spouse's catch-up contribution. Also, the family (joint) qualified expenses may be disbursed from the individual account with the exception of specific items impacting the individual account holder (Medicare eligibility, etc.)

As an aside, I discovered that COBRA premiums are qualified medical expenses that may be reimbursed from an HSA.
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Old 02-04-2020, 08:56 AM   #37
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Originally Posted by nvestysly View Post
DW and I have a family medical insurance policy. It is HDHP, HSA eligible and has quite a high deductible. Even if the deductible were considered to be divided by two the dollar value would be high enough to meet the HDHP / HSA threshold.

However, it's a family policy. So the deductible includes both of us. Regardless of who incurs the medical expense whether it be a "procedure," an office visit, etc. it goes against the family deductible. This is a pre-ACA policy that we pay for and deduct our premium on our taxes every year.

I think we are only allowed to have a family HSA. Is that correct?
Okay, I'm changing my thoughts a bit now that I've learned more of the proper (I think) terminology. Much thanks to the tutorial link REWahoo included earlier in this thread.

We have a family HDHP that is eligible for an HSA. We have been making family contributions to my HSA along with catch-up contributions since I am over 55.

1) DW is permitted to have her own HSA since our family plan is an HDHP. Correct?

2) Now that DW is over 55 she can also make a catch-up contribution if she establishes her own HSA. Correct?

3) Our HDHP is for a family - I'm primary, if that's the correct term, and DW is also on the same family plan. We are retired, been on the same HDHP for years so there is no first day of the month eligibility, no Medicare. Is there any reason why we cannot both have an HSA?
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Old 02-04-2020, 09:22 AM   #38
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Okay, I'm changing my thoughts a bit now that I've learned more of the proper (I think) terminology. Much thanks to the tutorial link REWahoo included earlier in this thread.

We have a family HDHP that is eligible for an HSA. We have been making family contributions to my HSA along with catch-up contributions since I am over 55.

1) DW is permitted to have her own HSA since our family plan is an HDHP. Correct?

2) Now that DW is over 55 she can also make a catch-up contribution if she establishes her own HSA. Correct?

3) Our HDHP is for a family - I'm primary, if that's the correct term, and DW is also on the same family plan. We are retired, been on the same HDHP for years so there is no first day of the month eligibility, no Medicare. Is there any reason why we cannot both have an HSA?

I vote YES, YES, NO
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Old 02-04-2020, 09:32 AM   #39
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I vote YES, YES, NO
^ +1
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Old 02-04-2020, 12:19 PM   #40
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you might be confusing roth ira contributions with HSA contributions. you need earned income for roth, investment income for HSA with eligible insurance.

Well, yes and no, I just assumed the HSA had most of the same rules as the IRA.
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