The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: dtp1987 on August 10, 2017, 03:59:50 PM
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Hi guys,
I'm very confused as to whether or not I am qualified for a HSA account. I have a subsidized family obamacare plan that has the following deductibles:
$2450 per member
$4900 per family
My health care plan does not offer an HSA with this account, but it would appear based on the current definitions of a HDHP (high deductible health plan) that I do qualify. The IRS has minimums at:
$1300 for self
$2600 for family
I tried calling my health care plan and they basically have no idea if my plan is qualified. The reason I am confused is because the health care plan doesn't offer the HSA, and because one of the foot notes on the IRS site says:
"There are some family plans that have deductibles for both the family as a whole and for individual family members. Under these plans, if you meet the individual deductible for one family member, you don't have to meet the higher annual deductible amount for the family. If either the deductible for the family as a whole or the deductible for an individual family member is less than the minimum annual deductible for family coverage, the plan doesn't qualify as an HDHP."
Does that apply to me? It appears it does. So I'm assuming I don't qualify? Thanks guys so much! Sorry if this is confusing. Appreciate all you knowledgeable folks!!
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Does that apply to me? It appears it does. So I'm assuming I don't qualify?
Yes it does so no you don't.
But I know of at least one legal firm and one Megacorp that meant to have qualifying HDHPs but overlooked exactly this issue.
I think each of those changed their plans mid-year to require the higher individual deductible and (apparently) the IRS was ok with that.
Might be worth discussing with your benefits department. Not the benefit customer service people - the benefits department director.
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Thank you very much for that! I guess my intuition was right. I am self-employed and have the plan through myself, not through a company.
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Does that apply to me? It appears it does. So I'm assuming I don't qualify?
Yes it does so no you don't.
But I know of at least one legal firm and one Megacorp that meant to have qualifying HDHPs but overlooked exactly this issue.
I think each of those changed their plans mid-year to require the higher individual deductible and (apparently) the IRS was ok with that.
Might be worth discussing with your benefits department. Not the benefit customer service people - the benefits department director.
So if I apply for a new plan during open enrollment that has at least a $2600 deductible for each member, I'll be fine?
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Does that apply to me? It appears it does. So I'm assuming I don't qualify?
Yes it does so no you don't.
But I know of at least one legal firm and one Megacorp that meant to have qualifying HDHPs but overlooked exactly this issue.
I think each of those changed their plans mid-year to require the higher individual deductible and (apparently) the IRS was ok with that.
Might be worth discussing with your benefits department. Not the benefit customer service people - the benefits department director.
So if I apply for a new plan during open enrollment that has at least a $2600 deductible for each member, I'll be fine?
If you are referring to qualifying under the Last-month rule (https://www.irs.gov/pub/irs-pdf/p969.pdf#en_US_2016_publink1000204049) then yes.
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Does that apply to me? It appears it does. So I'm assuming I don't qualify?
Yes it does so no you don't.
But I know of at least one legal firm and one Megacorp that meant to have qualifying HDHPs but overlooked exactly this issue.
I think each of those changed their plans mid-year to require the higher individual deductible and (apparently) the IRS was ok with that.
Might be worth discussing with your benefits department. Not the benefit customer service people - the benefits department director.
So if I apply for a new plan during open enrollment that has at least a $2600 deductible for each member, I'll be fine?
If you are referring to qualifying under the Last-month rule (https://www.irs.gov/pub/irs-pdf/p969.pdf#en_US_2016_publink1000204049) then yes.
No... I meant I would qualify in 2018 to start making HSA contributions if I change my policy to that slightly higher deductible, right? Thanks again!
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No... I meant I would qualify in 2018 to start making HSA contributions if I change my policy to that slightly higher deductible, right? Thanks again!
Yes, if the new policy won't start until 2018. If you can get the current policy changed to the higher deductible (so why wouldn't the insurance co. agree?) before 1-Dec-2017 then the last month rule would apply to 2017.