Finance Corner > Investing

HSA $6,750 family limit question

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Joel:
My wife has access to a HDHP w/ HSA.

For just her, the plan costs $0 and they contribute $600 to the account.
For her + me, the plan still costs $0 and they contribute $1,200 to the account.
No children.

With that said, we want to sign up for her + me through her employer, in order to get the extra $600 contribution from her employer.

With that said, my employer does not offer a HDHP w/ HSA. I'm able to get a decent Kaiser HMO medical plan for $24 per year through my employer. If I do not purchase insurance through my employer, my wife's employer charges a $125 per month spousal surcharge.

As a result, my wife has a HDHP w/ HSA for her and me, while I have an HMO covering just me.

Regarding the HSA, are we eligible for contribute $3,350 for my wife? Or $6,750 for the family?

My gut tells me we are probably limited to $3,350 for my wife, but I can't seem to find another saying we can't contribute $6,750.

RPNnerd:
You may need to review the spousal inclusion on your wife's insurance.  It sounds like they want to contribute and charge you at the same time.

Joel:
Based on some discussion on the Bogleheads forum, I came to the following conclusion:

HSA contribution limit: This is based solely on the type of plan. A family HDHP plan, a family HSA contribution limit. My wife can signup for a family plan with me as a covered individual, therefore limit = $6,750

HSA covered individual: The plan holder and if a family plan, spouse and dependents. I'm considered a covered individual.

HSA eligible individual: You are an eligible individual if you are a covered under a HDHP, you have no other health coverage (including Medicare) and you are not a dependent. I'm not considered an eligible individual, so I cannot make contributions to my own HSA account. However, that does not prevent her from being eligible for the family plan.

I need to review whether the $600 employer contribution and the tax savings make it worthwhile to have the increased deductible of the family HDHP for my wife as opposed to the individual HDHP.

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