HSA Question

[Murph]

My current plan is HSA eligible. I am allowed to contribute $7K (2019) plus “$1K catch up”-whatever that means. I will be switching from this current plan (my former employer COBRA) to the ACA.

Are HSA contribution limits the same for all HSA-eligible plans?

 

[njhowie]

Yes - IRS guidelines.

Each individual 55 or over can contribute an extra $1000/year.

For individual HSA that means $3500 + $1000 = $4500
For family HSA that means $7000 + $1000 = $8000

Note that for family HSA, you only get the $1000 catch-up once. Whereas if spouses each have individual HSAs they each can contribute $1000 catch-up, making $9000 total limit.

 

[mn54]

i will be pro-rating my HSA due to going on medicare. can I base the pro-rate on the $8K and have the remaining months go on DW HSA based on $4500?

 

[njhowie]

i will be pro-rating my HSA due to going on medicare. can I base the pro-rate on the $8K and have the remaining months go on DW HSA based on $4500?

So, you currently have a HSA family plan. After you go to medicare, as long as DW is still in a HSA eligible ACA plan, assuming she is age 55+, she can pro-rate the remaining months on $4500, but it has to be towards an individual HSA plan, not the family plan.

https://livelyme.com/hsa-contribution-limits-mid-year-changes/

Move from Family to Individual Coverage

You have family HDHP coverage. So you can can contribute a maximum of $7,000 to your HSA in 2019. But then in July, you have a mid-year status change. You switch to self-only coverage. Self-only coverage allows you to contribute a maximum of $3,500 to your HSA in 2019.

From January to June (6 months), you were eligible to contribute towards the family limit. As such, you would take 6/12, with 12 being the total number of months in the year, and multiply it by the family annual limit of $7,000. The result is $3,500. Then because from July – December you are covered under self-only coverage, you would multiply 6/12 by $3,500. The result is $1,750.

The result is a total contribution of $5,250 for the entire year.