HSA contribution

[JON]

Taxpayer has an HSA high deductable family plan. In October of 2007 he is 65 and covered by medicare. His spouse is 63. He wants to make the maximum contribution to his HSA for 2007..? What is that amount? He wants to fund it before April 2008.

[KJ Judd]

I don't know the answer but I will have the same situation in 2008. Wife will be covered by Medicare and husband will still have high deductible plan with HSA. Hopefully this will move it to the top & attract attention.

[David1980]

4838

From form instructions:
"You cannot deduct any contributions
for any month in which you were
enrolled in Medicare."

So would be ineligible for contributions in October, November, and December (when he was covered by Medicare.)

Gives 9 months. Form 8889 instructions on page 3 has a worksheet for calculating amount they can deduct, basically you add up 5650 for each month he was eligible and divide by 12. So 9 * 5650 / 12 = $4237.50

They also get an additional contribution amount. This is not calculated above as form instructions specify it goes to line 8 when it's family coverage and filing a MFJ return.

The additional contribution is 800 * number of months/12. So 9/12 * 800 = $600

Total contribution limit would be $4837.50. (Assuming no distributions, no spouse HSA account, and no archer MSAs)

Change the facts and make taxpayer 63 and spouse 65 with medicare for two months and the taxpayer can contribute 6450, as he would not be ineligible for those 3 months. Pub. 969 specifies that family coverage covers an eligible individual and at least one other person "whether or not that individual is an eligible individual".

So for KJ Judd's situation, the husband will not be affected by the spouse being enrolled in medicare. (The spouse however would be if she had her own HSA account.)