NEWLY MARRIED HSA HELP

[NYC_Squirrel]

hello,

I recently got married (11/14 to be exact) and I have a HSA with my work place that will max out (3600) by the year end thru paystub deductions.

I plan to add my wife onto my health plan, but we have not received our marriage certificate (and honestly probably won't until next year). (She does not have a HDHP/HSA account with her workplace)

I know that the deadline to deposit funds into a HSA for 2021 is 4/15/22 and since we're married on 11/14, we're considered being married for the whole year....

Does anyone know if I'm able to deposit additional funds (up to 7200) into my HSA account prior to 4/15/22 for 2021 after I add my wife to my health plan? most likely around January of 2022.   

[secondcor521]

Congratulations on getting married.

In order to qualify for the $7,200 contribution limit, you would have needed to have family coverage on your HDHP as of 12/1/2021.  Then you would fall under the Last month rule and would have been able to contribute the additional $3,600 as long as you maintained that family coverage throughout all of 2022.  See the instructions for Form 8889, especially Line 3, especially point 2:  https://www.irs.gov/pub/irs-pdf/i8889.pdf

In order to have family coverage on your HDHP, I believe you would have needed to add your new wife to your HDHP effective 12/1/2021, which it sounds like didn't happen.  But you can confirm this with your health insurance company to be sure.

You can start contributing the 2022 family maximum to your HSA starting 1/1/2022 (provided of course, that you either (a) add your new wife to coverage effective 1/1/2022, or add her to coverage before 12/1/2022 and keep family HDHP coverage throughout 2023).

[terran]

No, you need to have family HDHP coverage as of the 1st of a month to qualify to make that months worth of family limit contribution. Next year you can make 1/12th of the family limit contribution for any month in which you've both covered by your plan (and no other insurance) on the 1st of the month. If you're covered on 12/1/22 next year and continue to be covered for all of 2023 then you can make a full annual contribution under teh last month rule.

That "no other insurance" requirement is something be to careful of. Make sure she doesn't have a healthcare FSA (limited purpose of dependent care FSA is fine) either now or that carries over to next year, because that counts as other insurance that will not only disqualify family HSA contributions, but also your individual HSA contributions since the FSA can be used for your medical care.

[NYC_Squirrel]

Congratulations on getting married.

In order to qualify for the $7,200 contribution limit, you would have needed to have family coverage on your HDHP as of 12/1/2021.  Then you would fall under the Last month rule and would have been able to contribute the additional $3,600 as long as you maintained that family coverage throughout all of 2022.  See the instructions for Form 8889, especially Line 3, especially point 2:  https://www.irs.gov/pub/irs-pdf/i8889.pdf

In order to have family coverage on your HDHP, I believe you would have needed to add your new wife to your HDHP effective 12/1/2021, which it sounds like didn't happen.  But you can confirm this with your health insurance company to be sure.

You can start contributing the 2022 family maximum to your HSA starting 1/1/2022 (provided of course, that you either (a) add your new wife to coverage effective 1/1/2022, or add her to coverage before 12/1/2022 and keep family HDHP coverage throughout 2023).

thank you! this is very helpful!

[NYC_Squirrel]

No, you need to have family HDHP coverage as of the 1st of a month to qualify to make that months worth of family limit contribution. Next year you can make 1/12th of the family limit contribution for any month in which you've both covered by your plan (and no other insurance) on the 1st of the month. If you're covered on 12/1/22 next year and continue to be covered for all of 2023 then you can make a full annual contribution under teh last month rule.

That "no other insurance" requirement is something be to careful of. Make sure she doesn't have a healthcare FSA (limited purpose of dependent care FSA is fine) either now or that carries over to next year, because that counts as other insurance that will not only disqualify family HSA contributions, but also your individual HSA contributions since the FSA can be used for your medical care.

thanks! this is very helpful!