Author Topic: Married - Contribute Greater than 100% of Spouse Salary  (Read 1699 times)

Jmoody10

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Married - Contribute Greater than 100% of Spouse Salary
« on: January 25, 2017, 07:43:06 AM »
My wife makes $17,000 a year. We are looking at putting as much as possible in her 457 account (12,228 a year). The rest of her paycheck would go to Teacher Retirement, health insurance, FICA, ETC).

Can we still max out her HSA and IRA with my income? We file our taxes as married-jointly.

jessicat

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Re: Married - Contribute Greater than 100% of Spouse Salary
« Reply #1 on: January 25, 2017, 08:27:54 AM »
I don't know.  I do know I am a stay at home mom and I have my own Roth IRA that my dh gives me the money to put in it.

Proud Foot

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Re: Married - Contribute Greater than 100% of Spouse Salary
« Reply #2 on: January 25, 2017, 11:44:07 AM »
I am not sure how the HSA's work but you can max out her IRA because of the spousal IRA rules in IRS Publication 590

Jmoody10

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Re: Married - Contribute Greater than 100% of Spouse Salary
« Reply #3 on: January 25, 2017, 12:14:31 PM »
Thank you both!

For future people - she can max out her HSA and IRA with my income.

Highbeam

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Re: Married - Contribute Greater than 100% of Spouse Salary
« Reply #4 on: January 25, 2017, 01:00:30 PM »
How do you do it? I have a similar situation. Do you just write a check to take to her HR department? Send money directly to the custodian?

charis

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Re: Married - Contribute Greater than 100% of Spouse Salary
« Reply #5 on: January 25, 2017, 01:09:51 PM »
Like an IRA, you can contribute to an HSA separately from your employer, unlike a 401K/403b, etc.  You transfer money online from your bank account (or send a check if you so choose).   Then you deduct contributions on your tax return, like an IRA.

With This Herring

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Re: Married - Contribute Greater than 100% of Spouse Salary
« Reply #6 on: January 25, 2017, 02:17:18 PM »
Like an IRA, you can contribute to an HSA separately from your employer, unlike a 401K/403b, etc.  You transfer money online from your bank account (or send a check if you so choose).   Then you deduct contributions on your tax return, like an IRA.

Ideally, you should direct your employer to send $X per pay period to your outside account HSA, similar to the way you tell your employer that your direct deposit goes to your checking account, because only by being routed through payroll can you save on Social Security and Medicare taxes by contributing to an HSA.

JMoody, if you and your wife can get part of her paycheck going straight to the HSA to max it out, that would be the best course to decrease payroll taxes.

For others in the same situation:
1) Max HSA via paycheck deductions.
2) Some amount of paycheck must go to remaining payroll taxes.
3) Balance of paycheck goes to 401(k) or 457.
4) Fill up IRA with amounts from personal fund as limited by your income/spouse's income.

Jmoody10

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Re: Married - Contribute Greater than 100% of Spouse Salary
« Reply #7 on: January 27, 2017, 08:11:20 AM »
Perfect explanation! Thank you so much!