Finance Corner > Investing

HSA $6,750 family limit question


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.

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.

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.


[0] Message Index

Go to full version