HSA Questions

[TickTock]

Background: DW and I used to be on her megacorp HDHP and contributed to an HSA at the time. Following my switch several years ago to a new job we were on that HP which was not HD and not eligible for HSA. Now that I'm retired and we're going on ACA, I need to figure out how to max our HSA contributions to lower our AGI and MAGI.

I know 2024 limits are $8,300 for family coverage and $1,000 for 55+ catch-up contributions. I also understand that contributions do not have to come from earned income, and that an HSA can be used for a spouse or dependent.

Questions:

1. The current HSA is in DW's name. Can we load up the family maximum on that account, or do I need to start a separate HSA?

2. If we want to move the HSA from where it currently resides to another provider, say Fidelity, how do we go about doing that?

3. Just to make double-sure, HSA contributions do reduce AGI/MAGI, right?

 

[SevenUp]

1. Will you be using an HSA-eligible ACA plan? Most of the ACA plans do not support HSA contributions, but some do.

2. Call Fidelity and they will be happy to help you.

3. Yes, qualified ones do. See #1.

 

[cathy63]

There are three separate contributions you have to deal with:
- $8300 family contribution can go in either person's HSA account or be divided between them any way you like
- $1000 catch-up contribution for DW can only go in DW's HSA account
- $1000 catch-up for you can only go in your HSA account

Personally, we put the same amount in each of our HSAs every year.

 

[TickTock]

1. Will you be using an HSA-eligible ACA plan? Most of the ACA plans do not support HSA contributions, but some do.

I wasn't aware of that; I thought that the only thing needed for eligibility was a high deductible. Going into research mode...

 

[TickTock]

...and one of the PPO offerings is HSA qualified! Higher premiums, but allows us to make HSA contributions, and has lower deductibles and max OOP. (All PPO plans in our area are from the same provider.)

 

[PaunchyPirate]

...and one of the PPO offerings is HSA qualified! Higher premiums, but allows us to make HSA contributions, and has lower deductibles and max OOP. (All PPO plans in our area are from the same provider.)

Yep. Definitely make sure your exchange specifically denotes the plan as HSA-qualified. Sounds like you've got one. Starting this year, I went with a nice Gold PPO that is HSA compliant. I too wanted to lower my MAGI as much as I could and the HSA contribution will help do that. The higher premium is worth it to me, since I have a fair amount of medical spending each year. I met my $1700 deductible by the first week of February. The advice I see above is accurate as far as I know.