Author Topic: HSA rules for family coverage  (Read 366 times)

slowstart

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HSA rules for family coverage
« on: December 31, 2019, 11:38:13 AM »
Difficult to find via google though this might have answered it (https://solutions.americanfidelity.com/archive/hsa-mistakes-to-avoid-spouse-rules/)

Question: I have a family HDHP that covers myself and spouse. My spouse has an employer health plan that covers herself only.  Am I able to contribute the maximum HSA limit ($7000 for 2019) as it is a family plan covering multiple individuals? or am I limited to contributing $3500 because my spouse has supplementary coverage? 

If anyone has been in a similar situation and can offer advice it would be appreciated. [also please advise if this post is in the wrong section, apologies]

terran

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Re: HSA rules for family coverage
« Reply #1 on: December 31, 2019, 12:03:48 PM »
Does your plan cover your kids or other dependent or only you and your spouse?

slowstart

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Re: HSA rules for family coverage
« Reply #2 on: December 31, 2019, 12:07:28 PM »
We currently do not have kids, so just my wife and I.

MDM

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Re: HSA rules for family coverage
« Reply #3 on: December 31, 2019, 01:29:08 PM »
Pub. 969 is a good resource for things HSA.  For an IRS publication, it's reasonably readable.

E.g., on p. 4: "Family HDHP coverage is HDHP coverage for an eligible individual and at least one other individual (whether or not that individual is an eligible individual)."  That seems to fit your situation perfectly.

If you have family coverage, you may contribute the family maximum.

Just make sure your spouse has zero money in any general purpose healthcare FSA.  Even though her insurance policy doesn't cover you, by law FSA money can be used to reimburse a spouse's medical expense and that would make you ineligible for an HSA.

slowstart

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Re: HSA rules for family coverage
« Reply #4 on: December 31, 2019, 01:35:15 PM »
@MDM  thanks!  I somehow glossed over that explanation and tried to decipher it based on the "given scenarios" which are make it a bit more convoluted IMO.