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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Trudie on August 22, 2016, 12:49:57 PM

Title: HSA for catch-up contributions for 55 YO spouse
Post by: Trudie on August 22, 2016, 12:49:57 PM
I am 46, my spouse is 55.  I carry our HDHP through work and we will max the family limit on our contributions to our HSA this year.  Since I hold the account, it's my understanding that to make a catch-up contribution for my spouse he would have to open his own account to make catch up contributions.  (My employer pays all the fees on my account.)

I will check with my current fiduciary first (Bank of America) and see if they have any deals in this situation.  But otherwise, what are some good (cheap) options for setting one up on your own?

Thanks.
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: sisto on August 22, 2016, 01:03:18 PM
following as I will be in a similar situation in a couple of years.
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: Trudie on August 22, 2016, 03:09:09 PM
I just called my local bank and they can do an HSA checking account, with no fees.  Since we're only putting $1000/year in there I'm not too worried about not "making" money on my money since we're coming out ahead on fees.  Plus -- tax benefits.  It's like an immediate 15% return and helps keep us in the 15% bracket, so it's useful in other ways.

Moving on.... not going to spend more time on this decision.
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: seattlecyclone on August 22, 2016, 06:00:25 PM
Sounds very reasonable. Don't sweat the small stuff!
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: MDM on August 22, 2016, 10:50:59 PM
See http://forum.mrmoneymustache.com/taxes/good-hsa-providers/ and https://www.hsasearch.com/custodian-search/?name=&MFs=TRUE&submit=Submit for some options.

If you happen to have a large balance with Fidelity (e.g., if your 401k is held there), you can get an HSA for $0/yr with access to all the Fidelity funds - of course you'll choose only the low cost index ones. ;)
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: sisto on August 23, 2016, 01:54:31 PM
See http://forum.mrmoneymustache.com/taxes/good-hsa-providers/ and https://www.hsasearch.com/custodian-search/?name=&MFs=TRUE&submit=Submit for some options.

If you happen to have a large balance with Fidelity (e.g., if your 401k is held there), you can get an HSA for $0/yr with access to all the Fidelity funds - of course you'll choose only the low cost index ones. ;)
Thanks MDM! I do have a 401K with Fidelity so I'm glad to hear this is an option. I now need to call the custodian of my HSA and see if I can transfer any of it to Fidelity since I don't plan to use it until retirement.
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: MDM on August 23, 2016, 02:56:04 PM
...and see if I can transfer any of it to Fidelity....

See http://thefinancebuff.com/how-to-rollover-an-hsa-on-your-own-and-avoid-trustee-transfer-fee.html for some pertinent discussion.
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: sisto on August 24, 2016, 09:30:40 AM
MDM you rock! Thanks for the awesome advice you provide here!
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: kendallf on August 24, 2016, 12:32:01 PM
See http://forum.mrmoneymustache.com/taxes/good-hsa-providers/ and https://www.hsasearch.com/custodian-search/?name=&MFs=TRUE&submit=Submit for some options.

If you happen to have a large balance with Fidelity (e.g., if your 401k is held there), you can get an HSA for $0/yr with access to all the Fidelity funds - of course you'll choose only the low cost index ones. ;)
Thanks MDM! I do have a 401K with Fidelity so I'm glad to hear this is an option. I now need to call the custodian of my HSA and see if I can transfer any of it to Fidelity since I don't plan to use it until retirement.

I'd be interested to know if this is possible.  Fidelity told me that they do not do self-administered HSA accounts.  My wife actually works for Fidelity and we called their HSA department about this.  I have an account with HSA Bank now and transfer over from my HDHP's HSA (Health Equity) every year.
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: terran on August 24, 2016, 12:46:03 PM
See http://forum.mrmoneymustache.com/taxes/good-hsa-providers/ and https://www.hsasearch.com/custodian-search/?name=&MFs=TRUE&submit=Submit for some options.

If you happen to have a large balance with Fidelity (e.g., if your 401k is held there), you can get an HSA for $0/yr with access to all the Fidelity funds - of course you'll choose only the low cost index ones. ;)
Thanks MDM! I do have a 401K with Fidelity so I'm glad to hear this is an option. I now need to call the custodian of my HSA and see if I can transfer any of it to Fidelity since I don't plan to use it until retirement.

I'd be interested to know if this is possible.  Fidelity told me that they do not do self-administered HSA accounts.  My wife actually works for Fidelity and we called their HSA department about this.  I have an account with HSA Bank now and transfer over from my HDHP's HSA (Health Equity) every year.

Me too. Last time I asked they said they only offer them through employers right now. Where have you heard you can get one with a high enough balance?
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: MDM on August 24, 2016, 05:17:26 PM
Me too. Last time I asked they said they only offer them through employers right now. Where have you heard you can get one with a high enough balance?

We used https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/applications/hsa-application-only.pdf.  Don't know for sure about Fidelity's policy at the time we opened our HSAs, nor Fidelity's current policy, but nowhere on the application does it state that one has to be employed by any particular company.  I had been employed by Megacorp, who used Fidelity to administer the 401k plan, but we applied as "Retired" without naming Megacorp.  Although it says "contributions to this account are typically made through payroll deductions" they take our electronic funds transfers from our checking account just fine.

The high enough balance ($250K) refers to having the fee waived ("get an HSA for $0/yr") - see footnote on page 4 of https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/Brokerage_Commissions_Fee_Schedule.pdf.
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: GrOW on August 24, 2016, 05:21:04 PM
Help may come in the form of future HSA regulation changes. There are proposals making their way through congress that would allow spouse catch-up contributions to other spouse owned HSA accounts.
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: sisto on August 24, 2016, 05:26:13 PM
Help may come in the form of future HSA regulation changes. There are proposals making their way through congress that would allow spouse catch-up contributions to other spouse owned HSA accounts.
This is good news for me since I have 2 more years before I need to worry about it. I'm still planning to check into Fidelity since I have over $250K with them through my current job at Mega Corp.
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: terran on August 24, 2016, 07:17:42 PM
Me too. Last time I asked they said they only offer them through employers right now. Where have you heard you can get one with a high enough balance?

We used https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/applications/hsa-application-only.pdf.  Don't know for sure about Fidelity's policy at the time we opened our HSAs, nor Fidelity's current policy, but nowhere on the application does it state that one has to be employed by any particular company.  I had been employed by Megacorp, who used Fidelity to administer the 401k plan, but we applied as "Retired" without naming Megacorp.  Although it says "contributions to this account are typically made through payroll deductions" they take our electronic funds transfers from our checking account just fine.

The high enough balance ($250K) refers to having the fee waived ("get an HSA for $0/yr") - see footnote on page 4 of https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/Brokerage_Commissions_Fee_Schedule.pdf.

Interesting. I bet the 401k is what did it, but could be worth a shot even without it. What are the investment options like? Do you have access to spartan funds (they may have changed names, but I mean the low fee vanguard equivalent funds)?
Title: Re: HSA for catch-up contributions for 55 YO spouse
Post by: MDM on August 24, 2016, 09:11:55 PM
What are the investment options like? Do you have access to spartan funds (they may have changed names, but I mean the low fee vanguard equivalent funds)?

IIRC, the entire Fidelity portfolio is available.  Most of our HSA money is in FSTMX, Fidelity's total market index with a 0.10% expense ratio.