HSA: two catch-up contributions for $9,100 total for 2020, possible?
Hi, I am trying to figure out whether it is possible for a husband and wife on the same HDHP to benefit from the 55+ $1,000 catch up contribution to an HSA (for $2,000 extra and $9,100 total). Can a husband and wife who are both 55+, both on the same HDHP and both have separate HSAs contribute $4550 each for a total of $9100 between the two accounts?
Here's the language from Publication 969, page 7:
If both spouses are 55 or older and not enrolled in Medicare, each spouse’s contribution limit is increased by the additional contribution. If both spouses meet the age requirement, the total contributions under family coverage can’t be more than $9,000. Each spouse must make the additional contribution to his or her own HSA.
Example. For 2019, spouses Ginger and Lucy are both eligible individuals. They each have family coverage under separate HDHPs. Ginger is 58 years old and Lucy is 53. Ginger and Lucy can split the family contribution limit ($7,000) equally or they can agree on a different division. If they split it equally, Ginger can contribute $4,500 to an HSA (one-half the maximum contribution for family coverage ($3,500) + $1,000 additional contribution) and Lucy can contribute $3,500 to an HSA.
The example suggests that the two spouses have separate HDHPs, but it doesn't say anything about separate HDHPs in the prior text or anywhere else I can see. That's the only part that gives me pause. Would the husband and spouse still be able to each make the $1,000 catch up contribution if they were both over 55, on the same HDHP, but had separate HSAs? I recently had an accountant suggest that they could not contribute $9100 between the two accounts, but I'm having trouble sourcing that.
Posted Jul 9, 2020, 8:12 PM UTC
You can both be on the same HDHP. All that matters is that you are both eligible individuals and 55 or older.
Got it. So same HDHP, but separate HSAs should be OK. Thanks!
On page 7, it also states:
Rules for married people.
If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage.
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So it doesn't matter if it is the same or different HDHP as long as one is considered family coverage (which means at least two covered persons under the HDHP).
Although you are allowed a maximum contribution of $9,100 (for 2020) to your HSAs, there must be separate HSAs in this particular case (both spouses 55+).