Quick HSA question

[rubybeth]

DH and I are on separate health plans (no kids). Both are high deductible, HSA-eligible plans. I have access to an HSA through work, DH is not currently working (basically working full time for his grad school internship), but he has funds in his old HSA from when he was working. I was previously told that I can only fund my HSA as a single person ($3,350/year), because DH had his own HSA at work. But now, DH is not funding his HSA and we bought his medical coverage via our state's exchange. So, can I fund the HSA as a 'family' ($6,750) even though we aren't on the same plan?

Some proof of this on the IRS site or something would be helpful for working with my HR dept.

[DaveR]

You (or anyone else) can fund your husband's plan, it doesn't have to be as a "family" plan. Ref: https://www.irs.gov/publications/p969/ar02.html#en_US_2014_publink1000204045

Your HR dept probably won't play nice with sending pre-tax money off to another's plan, so it may need to be something you do out of net pay. If you need to, you should be able to adjust withholding amounts to keep tax deductions in line.

[charis]

 If you have a self-only HDHP, you can only contribute up to individual limit.  But as said above, if you husband has self only HDHP, you can contribute to his HSA up the individual limit as well.

[rubybeth]

If you have a self-only HDHP, you can only contribute up to individual limit.  But as said above, if you husband has self only HDHP, you can contribute to his HSA up the individual limit as well.

This is what I thought, and it's backed up here: https://www.irs.gov/publications/p969/ar02.html#en_US_2014_publink1000204045

"if you have self-only HDHP coverage, you can contribute up to $3,350. If you have family HDHP coverage you can contribute up to $6,650."

Because we are on separate, individual HDHP and not a shared family plan, I can only contribute $3,350 to mine.

[charis]

If you have a self-only HDHP, you can only contribute up to individual limit.  But as said above, if you husband has self only HDHP, you can contribute to his HSA up the individual limit as well.

This is what I thought, and it's backed up here: https://www.irs.gov/publications/p969/ar02.html#en_US_2014_publink1000204045

"if you have self-only HDHP coverage, you can contribute up to $3,350. If you have family HDHP coverage you can contribute up to $6,650."

Because we are on separate, individual HDHP and not a shared family plan, I can only contribute $3,350 to mine.

Does it really matter that you can't contribute the family contribution to one HSA when you can still contribute that amount split between two plans? (aside from paying FICA  for his HSA)

[redcedar]

Does it really matter that you can't contribute the family contribution to one HSA when you can still contribute that amount split between two plans? (aside from paying FICA  for his HSA)

Possibly. HSA plan differences can be significant from one to the next. Fees, investment options, rates on cash, website and mobile app, member services team, etc. It would be ideal to have the option of contributing to either plan or both. But if both of their plans are great, eh nothing lost.

[Jack]

Does it really matter that you can't contribute the family contribution to one HSA when you can still contribute that amount split between two plans? (aside from paying FICA  for his HSA)

Possibly. HSA plan differences can be significant from one to the next. Fees, investment options, rates on cash, website and mobile app, member services team, etc. It would be ideal to have the option of contributing to either plan or both. But if both of their plans are great, eh nothing lost.

HSAs aren't like 401ks. Employer contributions and payroll deductions (to avoid FICA) may have to be deposited to the work-associated account, but there's nothing stopping you from opening up another account at the bank of your choice and transferring the money there afterwards.

In other words:

• husband's job deposits to HSA account at bank A
• wife's job deposits to HSA account at bank B
• husband and wife each open separate accounts at bank C (or maybe a joint account -- not sure of the rules on this), and transfer their money from A and B respectively after each pay period.

[charis]

And here, the husband is not working so they can keep or move his HSA and make deposits without having to deal with payroll deductions.

[rubybeth]

And here, the husband is not working so they can keep or move his HSA and make deposits without having to deal with payroll deductions.

Right, we could open an HSA for DH or contribute to the one he already has from former employer. However, I was asking mainly because I get something kind of rare from my employer: a "benefit credit" that I can use toward various benefits, one of which being the HSA. Because I don't take the health insurance coverage from my employer, most of my "benefit credit" ends up in my HSA and my 457b (deferred comp) but when I do the 457b thing, I have to match it from my paychecks (not a bad thing, but makes for some complicated math). Anyway, if I was able to use my "benefit credit" toward fully funding a family HSA, that would be nice, but it's not an option unless we're on a family medical plan together. That's just not good financially for us, because having separate deductibles costs us far less than a shared higher deductible (DH always meets his deductible, while I rarely do). I still get the "benefit credit" and I have some forced savings to the 457b, so I'm not complaining.

Thanks for the help, mustachians! I knew I could count on you. :)