HSA limitation when both T and S have a plan

[LCP]

Family used to have health coverage provided by the taxpayer who still has an HSA account. They now have coverage provided by the spouse's employer and she has an HSA account. My software wants to divide the maximum contribution in half and limit each of them to that amount. Is that correct?

The taxpayer actually contributed $5000 while the spouse contributed only the $650 provided by her employer. Any idea what should happen here??

[Mo Sheets]

You can split differently....

I use TaxAct and it says "If you were treated as having family coverage for each month you were an eligible individual, divide the amount on line XX equally between you and your spouse, unless you both agree on a different allocation (such as allocating nothing to one spouse)."

As long as it doesn't exceed the maximum contribution amount for the year, you can divide this however it works out best, as long as both parties agree.

Mo

[LCP]

Thanks..... that's how I was reading it too.

While researching the matter another thought arose.......... since being covered by a high deductible health plan is the requirement for an HSA, could a covered child also have one of his own? With the recent ability to cover children longer that might be an opportunity.