HSA help- family or single?

[KSP]

I'm trying to max out all 2018 tax deductible accounts before I file taxes, I got a 50% raise near the end of last year so I expect we will be able to max out all tax deductible contributions for 2019 even with these contributions to 2018 accounts. My 5 year old son and I are on a "Obama care" HDHP that is eligible for an HSA, while my husband is on his own work- sponsored plan that is not eligible for an HSA. Can I contribute $6,900 since it is technically a "family plan" or just the $3850 single contribution? I called our health provider and they said it is categorized as a family plan but they don't manage contribution levels, I asked the "turbotax community" and received one answer that said I should qualify for the full family amount. Thoughts?

[therethere]

Family plan = Family limit.

If you're DH is on an HDHP plan with separate HSA he could also contribute up to an individual amount.

[KSP]

Just what I wanted to hear! Between you, the health provider and Turbotax that's 3 votes for Family contribution. I'm going for it.

[seattlecyclone]

Per IRS Publication 969, "Self-only HDHP coverage is HDHP coverage for only an eligible individual. 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)."

An "eligible individual" is defined as follows:

To be an eligible individual and qualify for an HSA, you must meet the following requirements.

• You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.
• You have no other health coverage except what is permitted under Other health coverage , later.
• You aren’t enrolled in Medicare.
• You can’t be claimed as a dependent on someone else’s 2018 tax return.

If you meet those four bullet points above, you're an eligible individual. If your health insurance covers you and at least one more person, it's considered family coverage for the purpose of HSA contribution limits.

Family plan = Family limit.

If you're DH is on an HDHP plan with separate HSA he could also contribute up to an individual amount.

This last bit isn't true. See this section in the publication. Married couples must share a single family-sized contribution limit. They can split their $6,900 however they like between their two HSAs, but they cannot contribute more than $6,900 in aggregate.

However there is an interesting loophole here where people who are unmarried but share family HDHP coverage are each eligible for their own family-sized HSA contribution. The special rule where two adults must split the contribution limit only applies to married people. This loophole can apply in the case of someone whose employer lets their unmarried partner join the company health insurance. It can also happen for adults under 26, who are no longer tax dependents of their parents, but remain on their parents' health insurance plan. In either case, there are two (or maybe more) people who meet the four bullet points for being an "eligible individual," all are covered by a family HDHP plan, and they are not married. Each of these people can contribute $6,900 to their own HSA.

[terran]

One slight wrinkle: I believe if your husband has an FSA that would disqualify you from making HSA contributions even though you're on separate insurance. At least, that's what the warnings included with the HSA documentation my wife's employer provides every year would seem to indicate. If this applies to you, you should seek further confirmation or contradiction as I don't have a more definite source either way, so just something to look in to.

[seattlecyclone]

That's correct. Many FSA plans will pay for the employee's spouse's medical expenses even if the spouse isn't actually covered by the employee's insurance plan. This FSA is considered "other health coverage" for the purpose of HSA eligibility. Decline the FSA if offered by your spouse's employer.

[KSP]

Thank you all for the details! At this point he does not have an FSA so I think we're in the clear there. This made the difference in owing $125 and getting a $512 refund!

[CarolinaGirl]

For what it’s worth, we have a family HSA as well as a ‘limited’ FSA.   The limited FSA can be used for vision and dental expenses.  So, you can technically have both an HSA and an FSA.