Depending on where she is on the SS benefit calculation curve, it might be worth not using payroll deduction but contributing to the HSA provider via check (or whatever conduit) instead.
If she is past the second bend point, the loss of SS benefit is probably negligible and doing the payroll deduction is the better path.
If she hasn't yet reached the first bend point, it might be worth some back of the envelope cost/benefit calculations.
Thats a good point. Never thought of that. When you say bends can you be more specific though? I will have her log in and see were she is at.
Yes, that is a good point.
If you fill out
this worksheet with her social security earnings to date (which you can find on the social security website) and then follow the steps, if she has any income applied to step 5 part c then she's over the 2nd bend point.
Basically, only the 35 highest earning years count. Remember that past years are indexed for inflation (see the worksheet). From those 35 years, the first $388,920 (=$926/month x 35 years x 12months/year) of lifetime earnings are counted at 90% which is a very good deal, after that anything up to $2,344,860 (=$5583/month x 35 years x 12months/year) of lifetime earnings are counted at 32%, which is still pretty good, but beyond that only 15% is counted, which doesn't change the eventual benefit very much.
Of course, your wife will be eligible for 1/2 of your benefit once you file, so if you significantly out earned her, then her building her own benefit is less valuable.