Quick HSA Question - can you change from family to individual later?

[mousebandit]

Setting up hubby's independent HSA account and have a quick question. 

If he sets up for a family account now (so that expenses incurred for myself and kids are also "eligible"), can we switch that next year (at that point I will likely be switching to a HDHP and would prefer to put kids and myself on a separate HSA)?? 

Or if we set him up for "family" now, is that set in stone forever? 

THANKS!

[seattlecyclone]

There's no such thing as a "family HSA." An HSA is always in one person's name, and any HSA allows the account holder to pay for medical expenses of their spouse and dependent children, whether those people currently are covered by HDHP insurance or not.

There is a higher HSA contribution limit for people who have "family coverage" on an HDHP, which is defined as coverage for at least one person in addition to the policy holder.

[mousebandit]

NEVERMIND, LOL!  Just figured out what I was looking at and I understand it now! 

I thought you had to designate whether the HSA itself was to cover qualified expenses for the whole family, or just the individual.  Now I realize, they're asking if the underlying HDHP is for an individual, or for a family, and that will determine the annual contribution limits for that HSA account.  :-)

It's all good, and we just set up with Optum.  We were going to go with Bank of America, but they aren't taking new apps until their online application site is completely re-done, and they have no estimate when that will be.  So, bummer, BofA.  Hello, Optum!!  LOL.

[mousebandit]

Seattle Cyclone - YEP!  TY!  That's what I figured out after a few minutes.  :-)